Refinancing: Which Option is for You?
There are a huge number of refinancing options available to borrowers. Contact us at 9727982110 and we will match you with the loan program that fits you best. surveying your options, you will need to think about your goals for your refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a wise choice for you. Maybe you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even when rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in that low interest rate for the life of your mortgage. This kind of loan is particularly a good choice if you aren't planning a move within the next five years or so. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Getting Out some Cash
Are you hoping to cash out some of your home equity with your refinance? It could be you're planning a special vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you will want to get a loan above the balance remaining of your current mortgage.Then you'll want If you've had your current 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? Good idea! If you have the home equity to make it work, paying off other high interest debt (for example: credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars each month.
Getting a Shorter Term Loan
Do you plan to build up equity more quickly, and have your mortgage paid off faster? If this is your goal, the refinance can move you to a mortgage program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your equity faster, even though your monthly payments will generally be more than you were paying. Conversely, if your existing longer term loan has a small remaining balance, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you understand your options and the numerous benefits in refinancing, please contact us at 9727982110. We will help you reach your goals!
Want to know more about refinancing? Call us at 9727982110.