Which Refinancing Option is Right for You?
Even though it may seem like it sometimes, there are not as many loan programs as there are borrowers! Call us at 9736012122 and we'll help you qualify for the best refinance loan program to fit your financial needs. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan may be a good choice for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low rate for the term of your loan. If you plan to stay in your home for at least five more years, a fixed rate mortgage may be an especially good fit for you. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced payments.
Refinancing to Cash Out
Is your refinance goal mainly to "cash out" some home equity? Your house needs updating; your daughter has been accepted to University and needs tuition; or you are taking your family on a cruise. With this in mind, you will need to find a loan for more than the balance remaining of your present mortgage loan.So you'll want If you've had your current mortgage for quite a while and/or have a mortgage loan with high interest, you may be able to do this without making your monthly payment bigger.
Perhaps you'd like to cash out some of the equity (cash out) to put toward other debt. If you own some higher interest debts (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Getting a Shorter Term Loan
Are you planning to fatten up your equity faster, and pay off your mortgage sooner? Consider refinancing to a short-term loan, like a 15-year mortgage. Your payments will probably be more than with your long-term mortgage loan, but in exchange, you will pay considerably less interest and will build up equity more quickly. On the other hand, if your current longer term mortgage loan has a small balance remaining, and was closed a while ago, you may even be able to make the switch without paying more each month. To help you figure out your options and the many benefits in refinancing, please call us at 9736012122. We are here for you.
Want to know more about refinancing? Give us a call at 9736012122.