Refinancing: Which Loan Program is for You?
The number of refinance options available to borrowers is truly breathtaking. Contact us at 9727982110 and we will help you qualify for the perfect refinance loan program for your needs. There are several questions to ask yourself while you consider the choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal choice for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage, even if interest rates rise. This kind of loan is especially a wise idea if you don't think you'll be moving within the next 5 years or so. However, if you do see yourself selling your home within the next few years, an ARM with a low initial rate may be the ideal way to reduce your monthly payments.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? Maybe you need to update your kitchen, pay your child's college tuition bill, or take your dream vacation. Then you want to get a loan for more than the remaining balance of your current mortgage loan.In this case, you will want to find a loan for a higher number than the balance remaining on your existing mortgage loan. You might not have an increase in your mortgage payemnt, however, if you've had your existing mortgage loan for a long time, and/or your loan interest rate is high.
Do you want to cash out some of your home equity to consolidate additional debt? Yes you can! If you have built up some equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a lot of money every month.
Building up Equity More Quickly
Are you dreaming of paying off your loan sooner, while beefing up your home equity quicker? You should consider refinancing to a shorterterm loan, often a 15-year mortgage. You will be paying less interest and increasing your home equity more quickly, even though your payments will usually be more than you have been paying. On the other hand, if your existing long-term loan has a small balance remaining, and was closed a while ago, you might be able to make the move without paying more each month. To help you understand your options and the many benefits of refinancing, please call us at 9727982110. We would love to help you reach your goals!
Curious about refinancing your home? Call us at 9727982110.