Which Refinancing Option is Right for You?

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There are not as many refinance loan programs as there are borrowers, but at times it seems like it! Contact us at 866-300-1550 and we will match you with the loan program that best fits you. What are your goals for refinancing? Considering in mind the following will help you narrow your choices.

Reducing Your Monthly Payments

Are achieving better mortgage payments and a better rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you set the low rate for the term of your mortgage. This kind of loan can be especially a wise idea if you don't think you'll be selling your home within the next five years or so. However, an ARM with a initial low payment could be a smarter way to lower your mortgage payments if you expect to move in the near future. Refinancing can also cause your finance charges to be more over the life of the loan.

Cashing Out

Are you planning to cash out some of your equity with your refinance? Your house needs improvements; your daughter has gone to University and needs tuition; or you are planning a special vacation. Then you will need to get a loan above the balance remaining on your existing mortgage loan.With this goal, you will You'll be looking for a loan for more than the balance remaining on your existing mortgage in that case. However, if your interest rate is high now and you've held it for quite a few years, you may be able to accomplish your goals without making your monthly payments higher.

Consolidating Your Debt

Do you hold other debt, perhaps with higher interest, that you'd like to consolidate? If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars monthly.

Building up Equity More Quickly

Are you dreaming of paying your loan off more quickly, while building up your home equity more quickly? In that case, you'll want to find out about refinancing to a short term mortgage - for example, a fifteen-year loan. The monthly payments will probably be higher than with a longer term loan, but the pay-off is: that you will pay considerably less interest and can build up equity more quickly. But, you may be able to switch without a higher monthly payment if your longer 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 multiple benefits of refinancing, please call us at 866-300-1550. We are here to help you reach your goals!