Which Refinancing Loan Program is Right for You?
When you are overwhelmed with so many choices, it may seem as if there are even more refinance programs than borrowers! We can guide you to select the loan program that can fit your situation the best. Contact us at (800)593-0143 to get things started. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you narrow your choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the best loan program for you. Maybe you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even when interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are planning to stay in your home for at least five more years, a fixed rate mortgage may be an especially good fit for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Is "cashing out" your primary purpose for your refinance? Maybe you need to pay for home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. So you will need to get a loan above the balance remaining on your current mortgage loan.In that case, you'll You will need to find a loan for more than the current balance of your present mortgage loan in that case. However, if your mortgage rate is high now and you've held it for quite a few years, you could be able to reach your goals without making your mortgage payments bigger.
Consolidating Your Debt
Perhaps you want to cash out some of the home equity (cash out) to use toward other debt. If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you can possible save several hundred dollars per month.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while building up your home equity quicker? In that case, you'll need to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. Although your mortgage payments will usually be more, you can be paying less interest; so your equity amount will build up faster. On the other hand, if your current long-term loan has a low balance remaining, and was closed a while ago, you may 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 can help you reach your goals!
Want to know more about refinancing your home? Give us a call at (800)593-0143.