Selecting a Refinancing Option

When you are overwhelmed with so many choices, it may seem as if there are even more loan programs than applicants! Contact us at 9018401400 and we can work with you to qualify you for the perfect loan program to fit your needs. There are some general questions to ask yourself as you consider the options.

Lowering Your Payments

Are getting reduced payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be your best option. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. 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 not expecting to move in the near future (about five years), a fixed-rate mortgage can especially be a great choice. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced monthly payments.

Getting Out some Cash

Is your refinance goal primarily to pull out some equity for an infusion of cash? It could be you want to make home improvements, take care of your college kid's tuition, or go on a special family vacation. In this case, you will want to look for a loan higher than the remaining balance on your present mortgage.Then you will need If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.

Debt Consolidation

Do you have other debt, maybe with a high interest rate, that you need to consolidate? If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars monthly.

Switching to a Shorter Term Loan

Are you planning to fatten up your equity faster, and pay off your mortgage more quickly? Consider refinancing with a short-term loan, often a 15-year mortgage. You will be paying less interest and growing your equity faster, although your monthly payments will usually be bigger than you were paying. Conversely, if your current long-term loan has a small remaining balance, and was closed a while ago, you may be able to make the switch without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please contact us at 9018401400. We are here for you.

Curious about refinancing your home? Give us a call: 9018401400.