Refinancing: Which Loan Program is for You?
Although it seems like it at times, there aren't as many refinance loan programs as there are borrowers! Contact us at 7133252099 and we can match you with the refinance loan program that is best for your needs. surveying your choices, you'll need to determine what you want to achieve with the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan could be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even if rates get higher later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set the low interest rate for the life of your mortgage. If you expect to live in your home for at least five more years, a fixed rate loan may be an especially good choice for you. On the other hand, if you do see yourself selling your home before too long, an ARM with a small initial rate may be the best way to reduce your monthly payments.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some of your home equity for an infusion of cash? Your house needs new carpet; your daughter has gone to University and needs tuition money; or you have a special family vacation planned. In this case, you'll need to get a loan above the remaining balance on your existing mortgage loan.In this case, you will You will be looking for a loan for a bigger amount than the balance remaining on your current home loan in this case. However, if your interest rate is high now and you have held it for quite a few years, you could be able to reach your goals without making your mortgage payments bigger.
Do you have other debt, perhaps with higher interest, that you want to consolidate? If you hold some higher interest debts (like credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the home equity built up to make it work.
Building up Equity More Quickly
Do you want to build up equity more quickly, and pay off your mortgage faster? Then, you'll need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. You will be paying less interest and increasing your home equity faster, even though your mortgage payments will likely be higher than they were. On the other hand, if your existing longer term mortgage has a low remaining balance, and was closed a while ago, you may be able to make the change without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please call us at 7133252099. We can help you reach your goals!
Want to know more about refinancing? Call us at 7133252099.