Which Refinancing Option is Right for You?

There aren't as many loan programs as there are applicants, but it feels like it sometimes! Call us at (800)593-0143 and we can work with you to qualify you for the best refinance loan for your situation. In order to review your options, you'll need to think about your goals for the refinance.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then the best option could be a low fixed-rate loan. Maybe you currently hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — in which the interest rate can vary. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage loan, even if interest rates rise. If you plan to live in your home for about five more years, a fixed rate loan may be a particulary good choice for you. However, an ARM with a initial low payment could be a better way to lower your monthly payments if you plan on moving in the next few years.

Getting Out some Cash

Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Perhaps you need to update your kitchen, pay your child's college tuition bill, or take your dream vacation. With this in mind, you want to apply for a loan higher than the remaining balance of your current mortgage.Then you'll You will want to find a loan for a higher amount than the balance remaining on your existing mortgage in this case. You may not increase your monthly payemnt, however, if you've had your existing mortgage loan for a long time, and/or your loan interest rate is high.

Consolidating Debt

Do you have other debt, maybe with a high interest rate, that you need to consolidate? If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars per month.

Getting a Shorter Term Loan

Are you hoping to fatten your home equity faster, and pay off your mortgage sooner? Then, you need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. Although your mortgage payments will probably be increased, you can save on interest; so your equity will build up faster. But, you could be able to make the change without much increase in your monthly mortgage payment if your long term loan was closed a while ago, and the remaining balance is low. You may even make it lower! To help you understand your options and the numerous benefits in refinancing, please contact us at (800)593-0143. We will help you reach your goals!

Want to know more about refinancing? Call us: (800)593-0143.

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