Refinancing: Which Loan Program is for You?
When you are overwhelmed with so many choices, it may seem as if there are even more refinance programs than applicants! Contact us at 4056158543 and we will match you with the loan program that is ideal for your needs. There are some general things to keep in mind while you review your options.
Lowering Your Payments
Are getting reduced mortgage payments and a lower rate your main reasons for refinancing? Then a good choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Different that 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 expect to live in your home for at least five more years, a fixed-rate loan may be an especially good fit for you. However, an ARM with a initial low payment may be a smarter way to reduce your monthly payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Are you refinancing primarily to "cash out" some home equity? Your home needs updating; your daughter has gone to University and needs tuition money; or you have a special family vacation planned. So you will want to get a loan for more than the remaining balance of your present mortgage.In that case, you will want You may not have an increase in your monthly payemnt, though, if you have had your current mortgage loan for a long time, and/or your interest rate is high.
Consolidating Your Debt
Do you want to pull out a portion of your home equity to consolidate other debt? Great idea! If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars monthly.
Paying it off Sooner
Are you wanting to fatten up your equity faster, and pay off your mortgage loan more quickly? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. You will be paying less interest and increasing your equity faster, although your payments will likely be higher than you have been paying. On the other hand, if your current long-term mortgage has a small balance remaining, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please call us at 4056158543. We are here for you.
Want to know more about refinancing your home? Call us: 4056158543.