Refinancing: Which Loan Program is for You?
When you are overwhelmed with all the choices, it may seem like there are even more refinance programs than applicants! Contact us at 7133252099 and we can match you with the loan program that is ideal for your needs. What are your goals for your refinance loan? Considering in mind the information below will help you begin your decision process.
Making Your Payments Lower
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. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good option. However, an ARM with a low intitial payment may be a wiser way to reduce your mortgage payments if you see yourself moving in the near future.
Are you refinancing primarily to pull out some of your equity for an infusion of cash? It could be you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. So you'll want to get a loan above the remaining balance on your present mortgage.Then you'll want to find a loan program for a higher number than the remaining balance on your existing mortgage loan. However, if your interest rate is high now and you have held it for a long time, you may be able to accomplish your goals without a rise in your mortgage payment.
Do you have other debt, perhaps with higher interest, that you need to consolidate? If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (for example: credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars per month.
Paying it off Sooner
Are you dreaming of paying your loan off sooner, while beefing up your equity more quickly? Then, you'll need to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. You will be paying less interest and growing your home equity more quickly, although your payments will usually be bigger than you have been paying. However, if you have had your existing thirty year mortgage loan for a long time and the loan balance is somewhat low, you may be do this without increasing your monthly mortgage payment — it's even possible to save! To help you figure out your options and the many benefits of refinancing, please call us at 7133252099. We can help you reach your goals!
Curious about refinancing your home? Call us at 7133252099.