Which Refinancing Program is Best for You?
There are an enormous number of refinancing options available to borrowers. Call us at (440) 234-9660 and we can match you with the refinance loan program that best fits you. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Maybe you currently hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the interest rate varies. Even if rates rise later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low interest rate for the term of your loan. This can be particularly a wise idea if you don't think you'll be moving within the next 5 years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get lower payments.
Is "cashing out" your primary reason for refinancing? Perhaps you need to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. Then you will need to apply for a loan for more than the balance remaining on your present mortgage.Then you will You'll want to get a loan for more than the remaining balance on your current mortgage loan in that case. You might not have an increase in your mortgage payemnt, though, if you've had your existing mortgage loan for a long time, and/or your loan interest rate is high.
Perhaps you'd like to pull out some home equity (cash out) to put toward other debt. If you hold some debt with high interest (such as credit cards or car loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have enough equity.
Building up Equity More Quickly
Are you hoping to fatten your home equity faster, and pay off your mortgage more quickly? In that case, you want to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. Although your monthly payments will usually be more, you will save on interest; so your home equity will build up faster. On the other hand, if your existing long-term mortgage has a small balance remaining, and was closed a while ago, you may be able to make the switch without paying more each month. To help you understand your options and the numerous benefits in refinancing, please call us at (440) 234-9660. We are here for you.
Want to know more about refinancing? Give us a call at (440) 234-9660.