Refinancing: Which Option is for Your Family?
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When you are overwhelmed with so many options, it may seem as if there are even more refinance loan programs than applicants! Call us at 888-365-2023 and we can match you with the refinance program that fits you best. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even as interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are planning to live in your home for at least five more years, a fixed-rate loan may be an especially good fit for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get lower mortgage payments. By refinancing your current mortgage, your total finance charges could be higher over the life of the loan.
Getting Out Some Cash
Are you wanting to cash out some of your equity with your refinance? Maybe you want to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. With this in mind, you'll need to apply for a loan above the remaining balance on your present mortgage.So you'll want You might not increase your mortgage payment, though, if you have had your current mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Maybe you'd like to cash out some home equity (cash out) to use toward other debt. If you have the home equity for it, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Building up Equity More Quickly
Are you dreaming of paying off your loan more quickly, while building up your equity faster? If this is your goal, the refinance loan can move you to a mortgage loan program with a shorter term, like a 15 year loan. The monthly payments will probably be higher than they were with a longer term mortgage, but the pay-off is: you will pay substantially less interest and will build up equity more quickly. However, if you have held your current thirty year mortgage for a number of years and the loan balance is rather low, you could be do this without raising your mortgage payment — it's even possible to save! To help you determine your options and the numerous benefits of refinancing, please call us at
888-365-2023. We will help you reach your goals!
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