Choosing a Refinancing Option
When you are overwhelmed with all the options, it may seem as if there are even more loan programs than borrowers! Call us at 877-310-6200 and we will help you qualify for the best loan program to fit your financial situation. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage loan, even if interest rates rise. If you are planning to live in your home for about five more years, a fixed-rate loan may be a particulary good option for you. 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 monthly payments.
Is your refinance goal primarily 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. Then you'll want to find a loan for more than the balance remaining on your existing mortgage loan.So you will You'll need to find a loan for more than the balance remaining of your present mortgage loan in that case. If you've had your existing mortgage loan for a long time and/or have a loan whose interest rate is high, you may be able to do this without increasing your mortgage payment.
Do you have other debt, perhaps with a higher interest rate, that you need to consolidate? If you own some debt with steep interest (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough equity.
Building up Equity More Quickly
Do you hope to build up home equity more quickly, and pay off your mortgage more quickly? If this is your wish, the refinance can change you to a loan program with a short, such as a 15 year loan. Although your monthly payment amount will probably be more, you can save on interest; so your equity will rise up faster. Conversely, if your current long-term loan has a small balance remaining, and was closed a while ago, you could be able to make the switch without paying more each month. To help you determine your options and the multiple benefits of refinancing, please call 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.