Which Refinancing Option is Best for You?
When you are overwhelmed with so many options, it may seem like there are even more refinance loan programs than applicants! Contact us at 877-310-6200 and we'll help you qualify for the right refinance loan program to fit your situation. What are your reasons for refinancing? Keeping in mind the following will help you narrow your choices.
Making Your Payments Lower
Are achieving reduced monthly payments and a lower rate your main refinance goals? If so, applying for a low, fixed-rate loan may be a wise option for you. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates come up later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set that low interest rate for the term of your loan. If you aren't planning on moving in the near future (about 5 years), a fixed-rate mortgage can especially be a great loan option. However, an ARM with a initial low payment could be a better way to lower your payments if you plan on moving in the next few years.
Getting Out some Cash
Are you wanting to cash out some of your equity in your refinance? Perhaps you want to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. Then you will need to find a loan higher than the balance remaining of your current mortgage loan.In this case, you need However, if your mortgage rate is high now and you've had it for quite a few years, you could be able to accomplish your goals without making your mortgage payments higher.
Do you have other debt, perhaps with a higher interest rate, that you'd like to consolidate? If you own some higher interest debts (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the equity built up to make it work.
Getting a Shorter Term Loan
Do you plan to build up home equity quicker, and have your mortgage paid off sooner? Consider refinancing with a shorterterm loan, like a 15-year mortgage. Even though your monthly payment amount will probably be more, you will save on interest; so your home equity will rise up faster. But, you could be able to make the change without a bigger monthly payment if your longer term loan was closed a while back, and the balance remaining is low. You could even pay less! To help you figure out your options and the many benefits in refinancing, please call us at 877-310-6200. We can help you reach your goals!
Want to know more about refinancing your home? Call us at 877-310-6200.