Refinancing: Which Loan Program is for You?
When you are overwhelmed with all the choices, it may seem like there are even more refinance loan programs than borrowers! Contact us at 866-300-1550 and we can match you with the refinance loan program that is best for your needs. surveying your choices, you will need to think about what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are achieving better payments and an improved rate your main reasons for refinancing? In that case, getting a low, fixed-rate loan could be a wise choice for you. Perhaps you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the interest rate varies. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage, even when interest rates rise. If you are planning to stay in your home for at least five more years, a fixed rate loan may be a particulary good choice for you. On the other hand, if you can see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate might be the ideal way to bring down your monthly payment.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? Perhaps you're dreaming of a cruise; you have to pay college tuition for your child; or you are updating your kitchen. So you will need to find a loan above the balance remaining on your existing mortgage.Then you You'll be looking for a loan for more than the balance remaining on your present mortgage in this case. You might not increase your monthly payemnt, however, if you have had your existing mortgage loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Perhaps you hope to cash out some home equity (cash out) to use toward other debt. If you own any debt with higher interest (like credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Building up Equity Faster
Do you hope to build up home equity quicker, and have your mortgage paid off more quickly? If this is your plan, the refinance loan can change you to a loan program with a short, for example: a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your monthly payments will generally be more than you were paying. But, you could be able to switch without much increase in your monthly payment if your longer term mortgage loan was closed a while back, and the remaining balance is small. You could even pay less! To help you determine your options and the many benefits of refinancing, please call us at 866-300-1550. We are here for you.
Curious about refinancing your home? Give us a call: 866-300-1550.