Refinancing: Which Loan Program is for You?
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There are an enormous number of refinancing programs available to borrowers. Contact us at 866-300-1550 and we will match you with the loan program that best fits you. There are some general things to keep in mind as you review the choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, a good option might be a low fixed-rate loan. Perhaps you now have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even as interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you expect to live in your home for about five more years, a fixed rate loan may be an especially good option for you. On the other hand, if you can see yourself moving in the near future, an ARM mortgage with a small initial rate might be the best way to reduce your monthly payments. As a result of refinancing, your total finance charges may be higher over the life of the loan.
Is "cashing out" your main reason for your refinance? Maybe you want to update your kitchen, take care of your college kid's tuition, or take your family on a dream vacation. So you'll need to get a loan above the remaining balance of your current mortgage.In this case, you need However, if your interest rate is currently high and you've held it for a long time, you may be able to achieve your goals without making your mortgage payments higher.
Do you want to pull out some home equity to consolidate other debt? Great idea! If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars monthly.
Building up Equity More Quickly
Are you dreaming of paying your loan off sooner, while building up your equity more quickly? You should consider refinancing with a short-term loan, like a 15-year mortgage. You will be paying less interest and increasing your equity faster, although your mortgage payments will usually be bigger than they were. But, you may be able to switch without much increase in your monthly mortgage payment if your long term loan was closed a while back, and the balance remaining is low. You may even pay less! To help you understand your options and the many benefits of refinancing, please contact us at
866-300-1550. We are here for you.
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