Which Refinancing Loan Program is Best for You?
Although it seems like it at times, there aren't as many loan programs as there are applicants! We can help you locate the refinance program that can fit your financial situation the best. Call us at (877) 226-8191 to get started. What are your reasons for refinancing? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the right loan program for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you set that low interest rate for the term of your loan. This kind of loan is particularly a wise idea if you don't think you'll be selling your home within the next five years or so. However, an ARM with a low intitial payment may be a better way to reduce your monthly payments if you plan on moving in the next few years.
Getting Out some Cash
Are you hoping to cash out some of your home equity with your refinance? Perhaps you want to update your kitchen, take care of your college kid's tuition, or take your family on a dream vacation. So you will need to get a loan higher than the remaining balance on your current mortgage loan.With this goal, you'll want If you've had your current mortgage for a long time and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Do you have other debt, perhaps with high interest, that you want to consolidate? If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you can possible save several hundred dollars a month.
Building up Equity Faster
Do you want to build up equity quicker, and pay off your mortgage more quickly? If this is your hope, the refinance can switch you to a loan program with a shorter term, like a 15 year loan. The mortgage payments will likely be more than with a longer term loan, but in exchange, that you will pay quite a bit less interest and will build up equity more quickly. But, you may be able to switch without much increase in your monthly payment if your longer term mortgage was closed a while ago, and the remaining balance is low enough. You may even make it lower! To help you understand your options and the multiple benefits of refinancing, please contact us at (877) 226-8191. We can help you reach your goals!
Want to know more about refinancing your home? Call us at (877) 226-8191.