Which Refinancing Option is Best for You?
Although it may seem like it sometimes, there aren't as many loan options as there are borrowers! We can guide you to find the refinance loan program that will fit your situation the best. Call us at 9727982110 to get started. What do you hope to achieve with refinancing? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, a good option could be a low fixed-rate loan. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage in which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your mortgage loan, even when interest rates rise. If you plan to stay in your home for about five more years, a fixed-rate loan may be an especially good fit for you. However, an ARM with a initial low payment may be a better way to reduce your mortgage payments if you expect to move in the next few years.
Getting Out some Cash
Is "cashing out" your primary purpose for refinancing? Your home needs improvements; your son has gone to college and needs tuition money; or you are taking your family on a cruise. With this in mind, you'll need to get a loan for more than the remaining balance of your current mortgage loan.In that case, you will You'll be looking for a loan for more than the balance remaining of your existing mortgage loan in that case. However, if your interest rate is high now and you have held it for quite a few years, you could be able to reach your goals without making your monthly payments increase.
Do you want to cash out some equity to consolidate other debt? Yes you can! 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 car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars monthly.
Paying it off Faster
Are you dreaming of paying off your loan faster, while building up your equity quicker? If this is your goal, your refinance loan can change you to a mortgage program with a shorter term, such as a 15 year loan. The mortgage payments will probably be more than with the long-term loan, but the pay-off is: you will pay quite a bit less interest and will build up equity more quickly. But, you could be able to switch without a higher monthly payment if your long term mortgage 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 multiple benefits of refinancing, please contact us at 9727982110. We are here for you.
Want to know more about refinancing? Call us at 9727982110.