Which Refinancing Option is Right for You?
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When you are overwhelmed with so many options, it may seem like there are even more refinance programs than applicants! We can guide you to locate the loan program that will fit your needs the best. Contact us at 9183711065 to get things started. What are your goals for your refinance loan? Considering in mind the following will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan may be a wise option for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set that low interest rate for the life of your loan. If you are planning to stay in your home for about five more years, a fixed-rate loan may be an especially good option for you. However, an ARM with a low initial payment may be a wiser way to lower your monthly payments if you expect to move in the near future.
Are you planning to cash out some of your home equity in your refinance? Your house needs improvements; your daughter has been accepted to college and needs tuition; or you are planning a special vacation. So you'll want to get a loan for more than the remaining balance on your current mortgage.In this case, you will need You may not increase your mortgage payment, however, if you have had your existing mortgage loan for a long time, and/or your interest rate is high.
Do you hold other debt, maybe with high interest, that you'd like to consolidate? If you own any debt with high interest (like credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have enough equity.
Paying it off Sooner
Are you hoping to fatten your equity faster, and pay off your mortgage loan sooner? Consider refinancing with a shorterterm loan, like a 15-year mortgage. Even though your monthly payment amount will usually be increased, you will be paying less interest; so your home equity will build up faster. But, you may be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the balance remaining is low enough. You could even make it lower! To help you determine your options and the multiple benefits of refinancing, please contact us at 9183711065. We are here for you.
Want to know more about refinancing your home? Call us at 9183711065.