Which Refinancing Option is Best for You?
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There are a huge number of refinancing options available to borrowers. Call us at (877) 682-8787 and we can work with you to qualify you for the perfect loan program for your financial situation. There are some general things to bear in mind while you consider the options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan may be a wise option for you. Perhaps you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the rate of interest 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, even if interest rates rise. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can especially be a great option. However, an ARM with a initial low payment could be a wiser way to lower your payments if you expect to move within the near future. Refinancing can also cause your total finance charges to be more over the life of the loan.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Your house needs renovating; your daughter has gone to college and needs tuition money; or you have a special family vacation planned. Then you need to get a loan above the balance remaining of your present mortgage loan.So you'll need If you've had your current mortgage for quite a while and/or have a mortgage loan with high interest, you might\could be able to do this without increasing your mortgage payment.
Perhaps you'd like to pull out some of the equity (cash out) to put toward other debt. If you have enough equity, paying off other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) could be able to save you a lot of cash each month.
Building up Equity More Quickly
Do you want to build up equity quicker, and have your mortgage paid off sooner? You should consider refinancing with a short-term loan, such as a 15-year mortgage loan. Your payments will probably be more than they were with your long-term mortgage, but in exchange, that you will pay considerably less interest and can build up equity more quickly. Conversely, if your current long-term mortgage has a low remaining balance, and was closed a while ago, you may even be able to make the move without paying more each month. To help you determine your options and the numerous benefits in refinancing, please call us at (877) 682-8787. We are here for you.
Want to know more about refinancing your home? Give us a call at (877) 682-8787.