Selecting a Refinancing Loan
There are not as many loan options as there are borrowers, but sometimes it seems like it! Call us at 877-310-6200 and we can match you with the loan program that fits you best. There are some general questions to ask yourself as you review your choices.
Reducing Your Monthly Payments
Are you refinancing 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 will stay at a certain low rate for the life of your mortgage, even if interest rates rise. This kind of loan can be particularly a good idea if you don't think you will sell your home within the next 5 years or so. However, an ARM with a initial low payment may be a wiser way to lower your mortgage payments if you expect to move within the near future.
Getting Out some Cash
Is your refinance goal primarily to "cash out" some home equity? Your house needs renovating; your daughter has been accepted to University and needs tuition money; or you are taking your family on a cruise. Then you will need to get a loan for more than the balance remaining on your current mortgage.In that case, you will want to qualify for a loan for a bigger number than the remaining balance on your existing mortgage loan. If you've had your current mortgage for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Maybe you want to cash out a portion of the equity (cash out) to put toward other debt. If you have some 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 through your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you dreaming of paying off your loan more quickly, while building up your equity quicker? In that case, you'll need to look into refinancing to a short term mortgage - such as a fifteen-year mortgage loan. Although your mortgage payment amount will usually be more, you can save on interest; so your equity will build up faster. Conversely, if your current longer term mortgage has a small balance remaining, and was closed a while ago, you could be able to make the change without paying more each month. To help you determine your options and the multiple 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
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