Refinancing: Which Loan Program is for You?
The number of refinance options available to borrowers can be overwhelming. Contact us at (405) 615-8543 and we can match you with the loan program that best fits you. There are several questions to ask yourself while you consider the options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, the best choice could be a low fixed-rate loan. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in that low interest rate for the life of your loan. This kind of loan is particularly a wise choice if you don't expect to sell your home within the next five years or so. However, if you can see yourself moving within the next few years, an ARM mortgage with a low initial rate might be the best way to bring down your monthly payments.
Are you refinancing primarily to pull out some of your equity for an infusion of cash? Maybe you want to update your kitchen, pay your child's college tuition bill, or go on a special family vacation. With this in mind, you'll want to find a loan higher than the remaining balance on your existing mortgage loan.With this goal, you'll need You might not increase your mortgage payemnt, though, if you have had your existing mortgage for a number of years, and/or your interest rate is high.
Do you want to cash out a portion of your home equity to consolidate additional debt? Excellent idea! If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars in your monthly budget.
Paying it off Faster
Are you dreaming of paying off your loan sooner, while beefing up your home equity faster? In that case, you need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. Your payments will probably be more than with the longer term mortgage loan, but the pay-off is: that you will pay quite a bit less interest and will build up equity quicker. However, if you have had your current 30 year loan for a long time and the remaining balance is rather low, you might be do this without increasing your mortgage payment — you may even be able to save! To help you figure out your options and the many benefits of refinancing, please call us at (405) 615-8543. We are here for you.
Want to know more about refinancing your home? Give us a call: (405) 615-8543.