Refinancing: Which Loan Program is for You?
When you are overwhelmed with so many choices, it may seem as if there are even more refinance programs than applicants! Contact us at 9043423622 and we will work with you to qualify you for the right loan program to fit your financial needs. What are your reasons for refinancing? Keeping in mind the following will help you narrow your choices.
Making Your Payments Lower
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. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage, even when interest rates rise. If you aren't planning on moving in the near future (about five years), a fixed-rate mortgage can particularly be a great loan option. However, an ARM with a low intitial payment could be a wiser way to lower your payments if you see yourself moving in the near future.
Are you wanting to cash out some of your equity in your refinance? Your house needs updating; your son has been accepted to University and needs tuition money; or you have a special family vacation planned. So you'll want to apply for a loan for more than the remaining balance of your present mortgage.In that case, you'll want However, if your interest rate is high now and you've held it for a long time, you could be able to achieve your goals without making your mortgage payments rise.
Consolidating Your Debt
Perhaps you want to pull out some of the equity (cash out) to use toward other debt. If you have the home equity to make it work, taking care of other high interest debt (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars per month.
Getting a Shorter Term Loan
Do you plan to build up home equity quicker, and pay off your mortgage sooner? If this is your hope, the refinance loan can change you to a loan program with a shorter term, for example: a 15 year loan. You will be paying less interest and growing your home equity more quickly, although your payments will usually be higher than they were. But, you could be able to switch without a higher monthly mortgage payment if your longer term mortgage was closed a while ago, and the remaining balance is small. You could even make it lower! To help you understand your options and the multiple benefits of refinancing, please contact us at 9043423622. We are here for you.
Curious about refinancing? Call us at 9043423622.