Choosing a Refinancing Option
Although it may seem like it sometimes, there aren't as many loan options as there are borrowers! Call us at 7032880777 and we will help you qualify for the best refinance program for your needs. surveying your options, you need to list your goals for the refinance.
Lowering Your Payments
Are getting reduced payments and an improved rate your main refinance goals? Then a good option may be a low fixed-rate loan. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — in which the rate of interest varies. Even when rates come up later, unlike with your ARM, when you close a fixed-rate mortgage, you set that low interest rate for the life of your mortgage. This can be especially a good option if you aren't planning a move within the next five years or so. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced monthly payments.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? Your home needs renovating; your daughter has gone to University and needs tuition money; or you are taking your family on a cruise. So you will need to find a loan above the remaining balance on your present mortgage loan.Then you'll need However, if your interest rate is currently high and you have held it for quite a few years, you may be able to reach your goals without a rise in your mortgage payment.
Consolidating Your Debt
Perhaps you'd like to pull out some home equity (cash out) to put toward other debt. If you have enough equity, paying toward other debt with higher interest that your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of cash every month.
Getting a Shorter Term Loan
Are you planning to fatten up your equity faster, and get your mortgage paid off sooner? In that case, you need to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. Your payments will probably be more than they were with the longer term loan, but in exchange, that you will pay substantially less interest and will build up equity more quickly. Conversely, if your existing long-term loan has a small remaining balance, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you understand your options and the many benefits in refinancing, please contact us at 7032880777. We will help you reach your goals!
Want to know more about refinancing your home? Call us at 7032880777.