Which Refinancing Option is Best for You?
Even though it seems like it at times, there aren't as many loan options as there are applicants! Call us at (800)593-0143 and we can match you with the refinance loan program that is best for your needs. In the interest of looking at your choices, you'll need to list your goals for the refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the best choice for you. Maybe you currently have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the loan, even if interest rates rise. If you are not expecting to sell your home in the near future (about five years), a fixed-rate mortgage can especially be a great option. On the other hand, if you can see yourself selling your home in the near future, an ARM with a small initial rate might be the ideal way to reduce your monthly payment.
Is "cashing out" your primary reason for your refinance? Your house needs improvements; your son has been accepted to college and needs tuition money; or you have a special family vacation planned. So you want to get a loan higher than the balance remaining on your existing mortgage.So you will want to need to qualify for a loan for a higher amount than the remaining balance on your present mortgage. If you've had your existing mortgage for quite a while and/or have a mortgage whose interest rate is high, you may be able to do this without increasing your mortgage payment.
Do you want to cash out some equity to consolidate other debt? Excellent idea! If you have enough equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a lot of cash every month.
Paying it off Sooner
Are you hoping to fatten up your equity faster, and pay off your mortgage sooner? Then, you need to find out about refinancing to a short term mortgage loan - like a fifteen-year loan. Even though your mortgage payment amount will likely be increased, you can be paying less interest; so your home equity will build up faster. Conversely, if your current long-term mortgage loan has a low balance remaining, and was closed a number of years ago, you may even be able to make the change without paying more each month. To help you understand your options and the multiple benefits in refinancing, please call us at (800)593-0143. We are here for you.
Curious about refinancing? Call us at (800)593-0143.