Refinancing: Which Loan Program is for You?
The huge number of refinance options available is truly breathtaking. Contact us at 4693224391 and we will match you with the refinance program that best fits you. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan could be a good option for you. Maybe you currently have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — in which the interest rate can vary. Even as interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you aren't planning on moving in the near future (about 5 years), a fixed-rate mortgage can particularly be a good choice. On the other hand, if you can see yourself selling your home before too long, an ARM mortgage with a small initial rate could be the best way to lower your monthly payment.
Is "cashing out" your main reason for refinancing? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you are updating your kitchen. So you will need to find a loan higher than the balance remaining of your present mortgage loan.With this goal, you'll need However, if your interest rate is currently high and you have held it for a long time, you could be able to reach your goals without making your monthly payments increase.
Consolidating Your Debt
Do you want to cash out some of your home equity to consolidate additional debt? Great plan! If you have enough home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a lot of cash every month.
Switching to a Shorter Term Loan
Are you hoping to fatten your home equity faster, and pay off your mortgage more quickly? If this is your hope, the refinance mortgage can change you to a loan program with a shorter term, such as a 15 year loan. The monthly payments will likely be higher than with a long-term loan, but the pay-off is: that you will pay considerably less interest and will build up equity quicker. On the other hand, if your current longer term mortgage loan has a low remaining balance, and was closed a while ago, you might be able to make the move without paying more each month. To help you understand your options and the many benefits in refinancing, please contact us at 4693224391. We are here for you.
Want to know more about refinancing? Call us: 4693224391.