Selecting a Refinancing Loan
There are a huge number of refinancing options available to borrowers. Contact us at (800)593-0143 and we can help you qualify for the perfect refinance program for your needs. There are several things to bear in mind while you review the options.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan might be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage loan, even if interest rates rise. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can especially be a great option. On the other hand, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate could be the ideal way to bring down your monthly payment.
Are you refinancing primarily to "cash out" some home equity? Your house needs new carpet; your son has been accepted to college and needs tuition money; or you are planning a special vacation. So you need to apply for a loan above the remaining balance on your present mortgage loan.Then you'll want to find a loan for a higher number than the remaining balance on your present mortgage. You may not have an increase in your mortgage payemnt, however, if you've had your current loan for a number of years, and/or your loan interest rate is high.
Do you hold other debt, maybe with a higher interest rate, that you need to consolidate? If you have any higher interest debts (like credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have the right amount of home equity.
Building up Equity More Quickly
Do you need to build up equity quicker, and pay off your mortgage faster? In that case, you'll need to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. Although your mortgage payment amount will probably be more, you can be paying less interest; so your equity amount will build up faster. But, you might be able to make the change without much increase in your monthly payment if your longer term loan was closed a while ago, and the balance remaining is low enough. You may even pay less! To help you figure out your options and the many benefits of refinancing, please call us at (800)593-0143. We are here for you.
Want to know more about refinancing your home? Call us at (800)593-0143.