Refinancing: Which Option is for You?

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There aren't as many refinance loan programs as there are applicants, but at times it feels like it! Contact us at 877-696-4687 and we will match you with the refinance loan program that fits you best. There are several things to bear in mind as you look at the options.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right loan program for you. Maybe you currently have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even as interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. This is particularly a good idea if you don't think you'll be moving within the next 5 years or so. On the other hand, if you do see yourself selling your home before too long, an ARM with a small initial rate may be the best way to bring down your monthly payment. As a result of refinancing, your total finance charges may be higher over the life of the loan.

Cashing Out

Are you wanting to cash out some of your equity in your refinance? Perhaps you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you will need to find a loan above the balance remaining of your existing mortgage loan.In this case, you need If you've had your current mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment higher.

Consolidating Your Debt

Do you hold other debt, maybe with a higher interest rate, that you want to consolidate? If you have the home equity to make it work, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars a month.

Paying it off Faster

Are you wanting to fatten your equity faster, and get your mortgage paid off more quickly? You should consider refinancing with a short-term loan, often a 15-year mortgage loan. Although your monthly payment amount will probably be more, you can save on interest; so your equity amount will rise up faster. However, if you've held your current 30 year loan for a number of years and the loan balance is rather low, you may be do this without raising your mortgage payment — it's even possible to save! To help you determine your options and the numerous benefits in refinancing, please contact us at 877-696-4687. We are here for you.