Refinancing: Which Program is for You?
Even though it may seem like it sometimes, there aren't as many refinance choices as there are borrowers! Contact us at 9722920448 and we can match you with the loan program that best fits you. There are several questions to ask yourself while you look at the choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the ideal option for you. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your loan, even if interest rates rise. If you plan to live in your home for at least five more years, a loan with a fixed rate may be an especially good fit for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Getting Out some Cash
Are you hoping to cash out some of your equity in your refinance? Perhaps you need to update your kitchen, pay your child's college tuition bill, or take a cruise. So you will need to get a loan for more than the remaining balance of your existing mortgage loan.In that case, you'll You will need to qualify for a loan for a higher amount than the balance remaining on your existing mortgage in that case. You may not have an increase in your monthly payemnt, though, if you have had your current mortgage for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with high interest, that you need to consolidate? If you own some debt with steep interest (like credit cards or car loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the equity built up to make it work.
Getting a Shorter Term Loan
Do you need to build up home equity quicker, and pay off your mortgage faster? Consider refinancing with a shorterterm loan, often a 15-year mortgage. You will be paying less interest and increasing your home equity more quickly, even though your mortgage payments will usually be more than they were. However, if you've held your current thirty year loan for a long time and the loan balance is rather low, you could be able to do this without raising your monthly payment — it's even possible to save! To help you figure out your options and the many benefits in refinancing, please contact us at 9722920448. We are here for you.
Want to know more about refinancing your home? Give us a call: 9722920448.