Which Refinancing Loan Program is Right for You?

There aren't as many loan options as there are borrowers, but it seems like it at times! We can help you locate the loan program that can fit your needs the best. Call us at 2813708282 to get things started. What are your reasons for refinancing? Keeping in mind the information below will help you begin your decision process.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan could be a wise choice for you. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Even if rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you set that low interest rate for the term of your loan. If you are expecting to stay in your home for about five more years, a fixed rate mortgage may be an especially good choice for you. However, an ARM with a initial low payment could be a smarter way to reduce your mortgage payments if you expect to move within the near future.

Getting Out some Cash

Is "cashing out" your main purpose for refinancing? Perhaps you need to pay for home improvements, take care of your college kid's tuition, or go on a special family vacation. Then you will want to get a loan above the remaining balance of your current mortgage loan.So you will need If you've had your current mortgage loan for quite a while and/or have a mortgage whose interest rate is high, you may be able to do this without making your mortgage payment higher.

Consolidating Your Debt

Do you want to pull out a portion of your home equity to consolidate other debt? Excellent idea! If you have enough equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of money each month.

Paying it off Faster

Do you plan to build up home equity more quickly, and have your mortgage paid off sooner? In that case, you'll want to look into refinancing to a short term mortgage - like a fifteen-year mortgage program. Although your monthly payment amount will likely be more, you will save on interest; so your equity amount will build up faster. However, if you've had your current thirty-year mortgage loan for a number of years and the remaining balance is rather low, you might be do this without raising your mortgage payment — you might even be able to save! To help you understand your options and the many benefits of refinancing, please call us at 2813708282. We would love to help you reach your goals!

Want to know more about refinancing your home? Give us a call at 2813708282.