Which Refinancing Program is Right for You?
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When you are overwhelmed with all the options, it may seem as if there are even more loan programs than applicants! Call us at and we can work with you to qualify you for the right refinance program for your situation. surveying your options, you'll need to determine your goals for your refinance.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your loan, even as interest rates rise. This is especially a wise option if you don't think you'll be moving within the next five years or so. However, if you can see yourself selling your home within several years, an ARM with a low initial rate might be the ideal way to bring down your monthly payments.
Getting Out some Cash
Are you planning to cash out some of your equity with your refinance? Maybe you want to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. In this case, you will want to find a loan above the balance remaining on your current mortgage loan.With this goal, you'll want to qualify for a loan program for a bigger amount than the remaining balance on your existing mortgage loan. However, if your loan interest rate is currently high and you've held it for quite a few years, you may be able to reach your goals without a rise in your mortgage payment.
Do you want to pull out a portion of your equity to consolidate other debt? Excellent idea! If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars in your monthly budget.
Building up Equity Faster
Are you hoping to fatten up your equity faster, and pay your mortgage loan off sooner? Consider refinancing with a short-term loan, such as a 15-year mortgage loan. Even though your mortgage payment amount will probably be more, you will be paying less interest; so your equity will build up faster. However, if you have held your existing thirty-year mortgage for a long time and the loan balance is somewhat low, you could be do this without increasing your monthly mortgage payment — you may even be able to save! To help you understand your options and the many benefits in refinancing, please contact us at . We are here for you.
Want to know more about refinancing your home? Give us a call: .
ach your goals!
Want to know more about refinancing your home? Call us: 800-805-7088.