Choosing a Refinancing Option
When you are overwhelmed with all the options, it may seem like there are even more refinance programs than borrowers! Call us at (877) 226-8191 and we'll work with you to qualify you for the best refinance loan to fit your financial situation. There are some general things to have in mind while you review your options.
Lowering Your Payments
Are achieving lower mortgage payments and a better rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the right choice for you. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Even when rates get higher later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low rate for the life of your mortgage. If you are planning to stay in your home for at least five more years, a fixed rate mortgage may be an especially good option for you. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower payments.
Is "cashing out" your primary purpose for refinancing? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you'll need to look for a loan above the balance remaining on your current mortgage loan.Then you will need If you've had your existing mortgage for a long time and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Maybe you'd like to cash out a portion of the equity in your home (cash out) to put toward other debt. If you hold any debt with steep interest (like credit cards or car loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of equity.
Paying it off Sooner
Are you hoping to fatten your home equity faster, and pay your mortgage loan off sooner? Then, you need to look into refinancing to a short term mortgage - like a fifteen-year loan. You will be paying less interest and growing your equity faster, although your mortgage payments will usually be higher than they were. However, if you have had your existing thirty-year mortgage loan for a number of years and the loan balance is relatively low, you could be do this without raising your monthly mortgage payment — you could even be able to save! To help you determine your options and the multiple benefits of refinancing, please contact us at (877) 226-8191. We are here for you.
Curious about refinancing your home? Give us a call at (877) 226-8191.