Choosing a Refinancing Option
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There are an enormous number of refinancing options available to borrowers. Contact us at 800-374-0046 and we can match you with the refinance loan program that is ideal for you. 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
Are achieving better payments and an improved rate your main reasons for refinancing? If so, getting a low, fixed-rate loan might be a wise option for you. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you get a fixed-rate mortgage, you set the low rate for the term of your mortgage. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can particularly be a wise choice. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for your refinance? Maybe you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. Then you'll want to get a loan higher than the remaining balance of your present mortgage loan.In that case, you will want If you've had your current mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment higher.
Debt Consolidation
Do you hold other debt, perhaps with higher interest, that you want to consolidate? If you have any debt with steep interest (such as credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough home equity.
Getting a Shorter Term Loan
Are you planning to fatten up your home equity faster, and pay off your mortgage loan more quickly? Consider refinancing with a short-term loan, such as a 15-year mortgage. Even though your mortgage payments will usually be increased, you will be paying less interest; so your equity amount will build up faster. But, you may be able to switch without a bigger monthly mortgage payment if your longer term loan was closed a while ago, and the remaining balance is low. You may even pay less! To help you determine your options and the multiple benefits in refinancing, please contact us at 800-374-0046. We would love to help you reach your goals!
