Refinancing: Which Loan Program is for You?
Even though it may seem like it at times, there aren't as many refinance choices as there are applicants! Call us at 9094671090 and we can help you qualify for the best loan program for your situation. In the interest of looking at your choices, you will 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? Then your best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the term of your loan. This kind of loan can be particularly a good idea if you don't plan to sell your home within the next five years or so. However, an ARM with a initial low payment could be a better way to reduce your payments if you see yourself moving in the near future.
Refinancing to Cash Out
Are you wanting to cash out some of your equity in your refinance? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you will need to qualify for a loan higher than the remaining balance of your existing mortgage.So you You'll want to qualify for a loan for more than the current balance with your present mortgage loan in that case. If you've had your existing mortgage for a number of years and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment bigger.
Do you have other debt, perhaps with a high interest rate, that you'd like to consolidate? If you have the equity in your home for it, taking care of other high interest debt (such as credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars monthly.
Switching to a Shorter Term Loan
Do you want to build up home equity quicker, and have your mortgage paid off faster? Consider refinancing to a shorterterm loan, like a 15-year mortgage. Although your monthly payments will likely be more, you will be paying less interest; so your home equity will build up faster. But, you could be able to make the change without much increase in your monthly payment if your long term loan was closed a while back, and the remaining balance is low enough. You may even pay less! To help you determine your options and the multiple benefits of refinancing, please call us at 9094671090. We are here for you.
Curious about refinancing? Call us: 9094671090.