Which Refinancing Program is Best for You?
The huge number of refinance options available to borrowers is truly breathtaking. Call us at 9037147086 and we can match you with the loan program that is ideal for your needs. What are your reasons for refinancing? Keeping in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan might be a good option for you. Perhaps you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — in which the interest rate can vary. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the loan, even when interest rates rise. This is especially a good option if you don't think you'll be selling your home within the next 5 years or so. However, an ARM with a low intitial payment may be a wiser way to reduce your monthly payments if you expect to move within the near future.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Your home needs new carpet; your daughter has gone to college and needs tuition; or you are taking your family on a cruise. So you'll want to find a loan above the balance remaining of your present mortgage.With this goal, you need However, if your mortgage rate is currently high and you've had it for quite a few years, you may be able to achieve your goals without an increase in your mortgage payment.
Perhaps you want to pull out a portion of the equity (cash out) to put toward other debt. If you have enough home equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) could help save you a chunk of cash each month.
Getting a Shorter Term Loan
Do you need to build up home equity quicker, and pay off your mortgage more quickly? You should consider refinancing to a short-term loan, often a 15-year mortgage loan. Your mortgage payments will likely be higher than they were with the longer term mortgage loan, but the pay-off is: you will pay considerably less interest and can build up equity more quickly. But, you could be able to switch without a higher monthly payment if your longer term mortgage was closed a while back, and the remaining balance is low enough. You may even pay less! To help you determine your options and the multiple benefits of refinancing, please call us at 9037147086. We are here for you.
Want to know more about refinancing? Give us a call at 9037147086.