Refinancing: Which Program is for You?
There are an enormous number of refinancing programs available to borrowers. Call us at 9727982110 and we'll help you qualify for the perfect loan program for your financial situation. What are your reasons for your refinance loan? Considering in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan could be a good choice for you. Perhaps you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your loan, even if interest rates rise. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise choice. However, if you do see yourself moving before too long, an adjustable rate mortgage with a small initial rate may be the ideal way to lower your monthly payments.
Is your refinance goal mainly to "cash out" some home equity? Your house needs new carpet; your son has gone to college and needs tuition; or you are taking your family on a cruise. In this case, you will need to get a loan for more than the balance remaining of your present mortgage loan.In that case, you will need You may not have an increase in your monthly payemnt, though, if you've had your current loan for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Perhaps you'd like to pull out some home equity (cash out) to use toward other debt. If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars monthly.
Getting a Shorter Term Loan
Do you plan to build up equity more quickly, and have your mortgage paid off more quickly? Consider refinancing with a short-term loan, often a 15-year mortgage loan. Although your monthly payments will usually be more, you can save on interest; so your home equity will rise up faster. But, you could be able to make the change without much increase in your monthly mortgage payment if your long term mortgage loan was closed a while back, and the remaining balance is low enough. You could even make it lower! To help you figure out your options and the many benefits in refinancing, please call us at 9727982110. We can help you reach your goals!
Want to know more about refinancing? Give us a call at 9727982110.