Which Refinancing Option is Best for You?
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Even though it seems like it at times, there aren't as many refinance choices as there are borrowers! Call us at 800-681-1036 and we'll help you qualify for the right loan program for your needs. There are several questions to ask yourself as you look at your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if rates come up later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low interest rate for the term of your mortgage. If you are expecting to stay in your home for about five more years, a fixed-rate loan may be an especially good choice for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower payments. As a result of refinancing, your total finance charges may be higher over the life of the loan.
Is "cashing out" your main reason for refinancing? Maybe you're planning a special vacation; you need to pay college tuition for your child; or you are planning some home improvements. So you want to find a loan above the balance remaining on your existing mortgage loan.So you will You will need to qualify for a loan for more than the balance remaining of your present mortgage in this case. If you've had your existing mortgage loan for quite a while and/or have a mortgage with a high interest rate, you might\could be able to do this without making your mortgage payment bigger.
Do you hold other debt, maybe with a higher interest rate, that you need to consolidate? If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars in your budget each month.
Paying it off Sooner
Do you plan to build up equity quicker, and have your mortgage paid off more quickly? If this is your hope, the refinance mortgage can change you to a loan program with a short, like a 15 year loan. The mortgage payments will probably be higher than with a longer term mortgage loan, but in exchange, you will pay quite a bit less interest and can build up equity quicker. However, if you've had your existing thirty year mortgage for a number of years and the remaining balance is relatively low, you could be able to do this without raising your mortgage payment — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please contact us at
800-681-1036. We would love to help you reach your goals!
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