Refinancing: Which Loan Program is for You?
There are an enormous number of refinancing options available to borrowers. Contact us at 9727982110 and we can match you with the refinance program that fits you best. In order to review your choices, you will need to determine your goals for the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan might be a wise choice for you. Maybe you currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage loan, even as interest rates rise. If you are planning to live in your home for about five more years, a loan with a fixed rate may be a particulary good choice for you. But if you do expect 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 of your equity for an infusion of cash? Your house needs updating; your son has been accepted to college and needs tuition money; or you are planning a special vacation. Then you'll want to qualify for a loan for more than the balance remaining on your existing mortgage.With this goal, you'll need If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment higher.
Do you want to cash out some home equity to consolidate additional debt? Great plan! If you have the equity in your home to make it work, paying off other high interest debt (such as credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars per month.
Switching to a Shorter Term Loan
Are you planning to fatten up your home equity faster, and get your mortgage paid off sooner? Then, you want to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. The mortgage payments will probably be more than with your long-term loan, but the pay-off is: you will pay substantially less interest and will build up equity quicker. However, if you have had your existing 30-year mortgage loan for a number of years and the remaining balance is somewhat low, you may be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you figure out your options and the numerous benefits in refinancing, please contact us at 9727982110. We are here for you.
Curious about refinancing? Call us: 9727982110.