Refinancing: Which Loan Program is for You?
The number of refinance options available is truly breathtaking. Call us at 2148657442 and we can match you with the refinance loan program that best fits you. There are some general things to keep in mind while you consider your choices.
Making Your Payments Lower
Are achieving better monthly payments and an improved rate your main refinance goals? If so, your best option could be a low fixed-rate loan. Maybe you are now in a mortgage with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you close a fixed rate mortgage, you set that low rate for the term of your mortgage. This is especially a good option if you aren't planning a move within the next five years or so. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced payments.
Getting Out some Cash
Are you planning to cash out some of your equity in your refinance? It could be you want to make home improvements, pay your child's college tuition bill, or take your family on a dream vacation. With this in mind, you want to find a loan above the balance remaining of your present mortgage.Then you'll need However, if your loan interest rate is high now and you have held it for a long time, you may be able to achieve your goals without making your monthly payments increase.
Do you want to cash out some of your equity to consolidate other debt? Good idea! If you have built up some equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) may help save you a lot of money every month.
Paying it off Faster
Are you planning to fatten your equity faster, and pay your mortgage loan off sooner? Consider refinancing to a short-term loan, such as a 15-year mortgage. The payments will likely be higher than they were with a long-term loan, but the pay-off is: you will pay quite a bit less interest and can build up equity quicker. But, you might be able to make the change without a bigger monthly payment if your long term mortgage loan was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you determine your options and the multiple benefits of refinancing, please call us at 2148657442. We can help you reach your goals!
Curious about refinancing your home? Call us: 2148657442.
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