Which Refinancing Loan Program is Best for You?
The huge number of refinance options available can be overwhelming. Call us at 888-540-4114 and we can match you with the refinance program that best fits you. Surveying your options, you should consider your goals for the refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then your best option could be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a loan with which the rate of interest varies – an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. If you aren’t expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a great choice. However, an ARM with a initial low payment may be a smarter way to reduce your monthly payments if you see yourself moving in the next few years. Refinancing can also cause your finance charges to be higher over the life of the loan.
Getting Out Some Cash
Is your refinance goal mainly to “cash out” some home equity? Maybe you’re dreaming of a cruise; you need to pay college tuition for your child; or you are planning some home improvements. With this in mind, you’ll need to find a loan for more than the remaining balance on your existing mortgage loan.So you will want You might not have an increase in your mortgage payment, though, if you’ve had your existing mortgage for a while, and/or your interest rate is high.
Perhaps you’d like to pull out some equity in your home (cash out) to put toward other debt. If you have some debt with high interest (like credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have enough equity.
Paying it off Faster
Are you dreaming of paying off your loan faster, while building up your equity more quickly? Then, you need to look into refinancing to a short term mortgage – like a fifteen-year loan. You will be paying less interest and increasing your equity faster, although your payments will likely be bigger than they were. However, if you have had your existing thirty year mortgage loan for a long time and the remaining balance is relatively low, you may be able to do this without increasing your monthly 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 888-540-4114. We can help you reach your goals!