Selecting a Refinancing Loan
Even though it may seem like it sometimes, there aren't as many loan programs as there are applicants! We can help you choose the refinance loan program that will fit your needs the best. Call us at 4056158543 to get things started. surveying your choices, you will need to consider your goals for the refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan may be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of the mortgage, even as interest rates rise. If you expect to stay in your home for at least five more years, a fixed rate mortgage may be an especially good choice for you. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary reason for refinancing? It could be you want to make home improvements, take care of your college kid's tuition, or go on a dream vacation. In this case, you'll need to look for a loan for more than the remaining balance of your present mortgage loan.With this goal, you'll want to find a loan for a bigger number than the remaining balance on your current mortgage loan. However, if your loan interest rate is currently high and you've held it for a long time, you may be able to reach your goals without making your monthly payments increase.
Maybe you'd like to pull out a portion of the equity (cash out) to put toward other debt. If you own any debt with higher interest (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have enough equity.
Building up Equity More Quickly
Are you wanting to fatten your home equity faster, and pay your mortgage off sooner? If this is your plan, your refinance can change you to a mortgage loan program with a shorter term, for example: a 15 year loan. The payments will probably be more than with the longer term loan, but the pay-off is: you will pay considerably less interest and can build up equity quicker. On the other hand, if your existing longer term mortgage loan has a low balance remaining, and was closed a while ago, you may be able to make the switch without paying more each month. To help you understand your options and the multiple benefits of refinancing, please contact us at 4056158543. We are here to help you reach your goals!
Curious about refinancing? Give us a call at 4056158543.