Which Refinancing Option is Best for You?
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Although it may seem like it at times, there aren't as many refinance choices as there are borrowers! Call us at 9705329896 and we will match you with the loan program that fits you best. In order to review your choices, you will need to determine your goals for your refinance.
Reducing Your Monthly Payments
Are achieving lower mortgage payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if rates come up later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in that low rate for the term of your mortgage. If you are expecting to stay in your home for at least five more years, a fixed rate loan may be a particularly good choice for you. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower monthly payments. By refinancing your current mortgage loan, you could wind up paying more in finance charges over the life of the loan.
Getting Out Some Cash
Is "cashing out" your main purpose for refinancing? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you plan to renovate your home. Then you need to get a loan higher than the balance remaining of your present mortgage loan.So you'll need You may not increase your mortgage payment, though, if you've had your existing loan for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you hold other debt, maybe with higher interest, that you need to consolidate? If you have a fair amount of equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might help save you a lot of money each month.
Getting a Shorter Term Loan
Do you want to build up equity quicker, and pay off your mortgage sooner? Then, you want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. You will be paying less interest and increasing your equity faster, even though your monthly payments will likely be higher than they were. But, you may be able to switch without much increase in your monthly payment if your longer term mortgage was closed a while ago, and the balance remaining is small. You could even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at
9705329896. We are here for you.
Curious about refinancing? Give us a call at
9705329896.