Which Refinancing Option is Best for You?
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There aren't as many loan program choices as there are applicants, but it feels like it at times! Contact us at 872-222-6178 and we can match you with the loan program that fits you best. In order to review your choices, you can determine what you want to achieve with the refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the best loan program for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is especially a wise choice if you aren't expecting a move within the next five years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower payments. As a result of refinancing, your total finance charges can be higher over the life of the loan.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? Perhaps you need to pay for home improvements, pay your child's college tuition bill, or take a cruise. So you want to qualify for a loan above the balance remaining on your current mortgage.Then you want to qualify for a loan program for a higher number than the balance remaining on your present mortgage loan. You might not have an increase in your mortgage payment, however, if you have had your existing loan for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to pull out some home equity to consolidate additional debt? Yes you can! If you have a fair amount of equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a chunk of money every month.
Paying it off Faster
Are you planning to fatten your home equity faster, and pay your mortgage off sooner? In that case, you'll need to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. Although your mortgage payments will usually be increased, you will save on interest; so your equity amount will build up faster. Conversely, if your current long-term loan has a small balance remaining, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you understand your options and the multiple benefits of refinancing, please contact us at
872-222-6178. We are here for you.
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