Choosing a Refinancing Option

There are a huge number of refinancing options available to borrowers. We can help you select the loan program that can fit your financial situation the best. Call us at (800)593-0143 to get things started. There are some general questions to ask yourself while you consider your choices.

Lowering Your Payments

Are achieving better monthly payments and an improved rate your main reasons for refinancing? If so, getting a low, fixed-rate loan might be a wise option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the loan, even when interest rates rise. If you plan to live in your home for about five more years, a fixed rate mortgage may be a particulary good choice for you. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced mortgage payments.

Getting Out some Cash

Are you refinancing primarily to "cash out" some home equity? Your home needs improvements; your son has been accepted to college and needs tuition; or you have a special family vacation planned. Then you'll want to qualify for a loan for more than the balance remaining on your current mortgage.So you will want to need to find a loan for a higher number than the balance remaining on your present mortgage loan. You may not increase your monthly payemnt, though, if you've had your current loan for a number of years, and/or your loan interest rate is high.

Consolidating Your Debt

Maybe you hope to cash out a portion of the equity in your home (cash out) to put toward other debt. If you have the equity in your home to make it work, taking care of other high interest debt (like credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars in your budget each month.

Switching to a Shorter Term Loan

Are you dreaming of paying your loan off sooner, while building up your home equity quicker? Then, you'll want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. You will be paying less interest and growing your equity more quickly, even though your mortgage payments will usually be bigger than you were paying. But, you may be able to switch without a higher monthly mortgage payment if your long term loan was closed a while back, and the balance remaining is small. You could even make it lower! To help you figure out your options and the many benefits in refinancing, please contact us at (800)593-0143. We are here to help you reach your goals!

Curious about refinancing? Call us: (800)593-0143.

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