Refinancing: Which Option is for You?
Even though it may seem like it at times, there are not as many loan options as there are applicants! Call us at (800) 974-0509 and we can match you with the refinance loan program that is ideal for your needs. In order to review your options, you need to determine what you want to achieve with your refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the right loan program for you. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even as interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you expect to live in your home for at least five more years, a fixed rate loan may be an especially good option for you. On the other hand, if you can see yourself selling your home before too long, an ARM with a small initial rate may be the best way to reduce your monthly payments.
Getting Out some Cash
Is "cashing out" your primary reason for refinancing? It could be you want to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. In this case, you need to find a loan for more than the balance remaining on your existing mortgage loan.So you'll You'll want to find a loan for a higher amount than the balance remaining on your current home loan in this case. You might not have an increase in your mortgage payemnt, though, if you have had your current loan for a number of years, and/or your interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you have the home equity to make it work, taking care of other high interest debt (for example: credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars in your monthly budget.
Paying it off Sooner
Do you hope to build up home equity more quickly, and pay off your mortgage more quickly? Consider refinancing to a shorterterm loan, often a 15-year mortgage loan. Your monthly payments will probably be more than with your longer term mortgage, but the pay-off is: that you will pay considerably less interest and will build up equity quicker. However, if you have held your existing thirty-year loan for a long time and the remaining balance is somewhat low, you may be able to do this without raising your monthly payment — you could even be able to save! To help you understand your options and the multiple benefits of refinancing, please contact us at (800) 974-0509. We are here for you.
Curious about refinancing? Call us: (800) 974-0509.