Choosing a Refinancing Loan
Even though it seems like it at times, there are not as many refinance loan options as there are applicants! Contact us at (800)593-0143 and we can match you with the refinance loan program that is best for your needs. There are several things to bear in mind as you consider the choices.
Reducing Your Monthly Payments
Are getting reduced mortgage payments and a lower rate your main refinance goals? In that case, a low, fixed rate loan may be the ideal choice for you. Perhaps you are presently in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you set the low rate for the life of your loan. If you are expecting to stay in your home for at least five more years, a fixed-rate loan may be a particulary good option for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower payments.
Is your refinance goal mainly to pull out some of your home equity for an infusion of cash? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you are updating your kitchen. In this case, you want to find a loan above the balance remaining of your existing mortgage.So you'll want If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Do you want to pull out some equity to consolidate additional debt? Excellent idea! If you have the equity in your home to make it work, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you may be able to save 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? If this is your plan, your refinance can switch you to a loan program with a short, like a 15 year loan. Even though your mortgage payment amount will likely be more, you will save on interest; so your equity will build up faster. But, you could be able to switch without a higher monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is low. You could even make it lower! To help you understand your options and the many benefits of refinancing, please contact us at (800)593-0143. We are here for you.
Want to know more about refinancing? Give us a call: (800)593-0143.