Refinancing: Which Option is for You?

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When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than borrowers! We can guide you to select the refinance program that can fit your situation the best. Contact us at 855-375-1211 to get things started. In order to review your options, you can consider your goals for your refinance.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan could be a wise choice for you. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you set the low interest rate for the term of your mortgage. This kind of loan can be especially a wise choice if you aren't planning a move within the next 5 years or so. However, an ARM with a low initial payment could be a wiser way to reduce your monthly payments if you expect to move within the near future. Due to refinancing, your total finance charges can be higher over the life of the loan.

Cashing Out

Is your refinance goal primarily to "cash out" some home equity? It could be you're going on a much needed vacation; you have to pay college tuition for your child; or you plan to renovate your home. In this case, you will need to find a loan above the remaining balance on your present mortgage loan.So you'll want to need to get a loan for a higher amount than the balance remaining on your current mortgage loan. However, if your loan interest rate is high now and you've held it for a long time, you could be able to achieve your goals without an increase in your mortgage payment.

Consolidating Your Debt

Do you want to pull out some of your equity to consolidate other debt? Great plan! If you have the equity in your home for it, taking care of other high interest debt (such as credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars monthly.

Building up Equity Faster

Are you hoping to fatten up your equity faster, and pay your mortgage off sooner? Consider refinancing with a short-term loan, often a 15-year mortgage. The payments will probably be more than they were with the longer term mortgage loan, but in exchange, that you will pay substantially less interest and will build up equity more quickly. But, you might be able to make the change without much increase in your monthly payment if your long term loan was closed a while back, and the balance remaining is somewhat low. You may even pay less! To help you understand your options and the many benefits in refinancing, please contact us at 855-375-1211. We will help you reach your goals!