Which Refinancing Program is Right for You?
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than applicants! Call us at 877-310-6200 and we can match you with the refinance loan program that is ideal for you. There are some general things to bear in mind while you review the choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a good option for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about five years), a fixed-rate mortgage can especially be a wise option. On the other hand, if you can see yourself selling your home within the next few years, an adjustable rate mortgage with a low initial rate may be the ideal way to bring down your monthly payments.
Is your refinance goal primarily to "cash out" some home equity? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. Then you will need to get a loan for more than the balance remaining on your present mortgage loan.So you'll need However, if your mortgage rate is high now and you've held it for quite a few years, you could be able to achieve your goals without an increase in your mortgage payment.
Do you want to cash out some home equity to consolidate other debt? Good idea! If you have some higher interest debts (such as credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Switching to a Shorter Term Loan
Are you planning to fatten your home equity faster, and get your mortgage paid off more quickly? In that case, you want to look into refinancing to a short term mortgage - like a fifteen-year mortgage program. Even though your mortgage payment amount will likely be increased, you can be paying less interest; so your equity will build up faster. However, if you have held your current 30 year mortgage loan for a long time and the loan balance is rather low, you could be able to do this without increasing your monthly mortgage payment — you may even be able to save! To help you figure out your options and the many benefits in refinancing, please contact us at 877-310-6200. We are here for you.
Curious about refinancing? Give us a call at 877-310-6200.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.