Which Refinancing Program is Right for You?
Although it seems like it at times, there are not as many refinance loan options as there are borrowers! Call us at (800)593-0143 and we can help you qualify for the best refinance loan for your situation. surveying your choices, you can list your goals for the refinance.
Lowering Your Payments
Are getting better payments and an improved rate your main refinance goals? If so, applying for a low, fixed-rate loan may be a wise choice for you. Perhaps you are currently in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your loan, even if interest rates rise. If you aren't expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great loan option. However, if you can see yourself moving in the near future, an ARM mortgage with a small initial rate could be the best way to reduce your monthly payments.
Getting Out some Cash
Is your refinance goal primarily to pull out some equity for an infusion of cash? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. So you'll want to get a loan higher than the remaining balance on your existing mortgage.In this case, you will You will want to qualify for a loan for a bigger amount than the balance remaining on your existing home loan in this case. However, if your mortgage rate is currently high and you've had it for quite a few years, you could be able to accomplish your goals without making your mortgage payments bigger.
Perhaps you want 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, paying off other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars in your monthly budget.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your home equity faster? Then, you need to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. Although your monthly payment amount will usually be increased, you will save on interest; so your equity amount will build up faster. On the other hand, if your existing longer term mortgage loan has a low remaining balance, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you understand your options and the many benefits of refinancing, please contact us at (800)593-0143. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call at (800)593-0143.