Selecting a Refinancing Loan
The number of refinance options available can be overwhelming. Contact us at (440) 234-9660 and we can match you with the refinance loan program that is best for you. What do you hope to achieve with refinancing? Keeping in mind the following will help you begin your decision process.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even as interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you expect to stay in your home for at least five more years, a fixed-rate loan may be an especially good choice for you. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced payments.
Is your refinance goal primarily to pull out some equity for an infusion of cash? Your house needs improvements; your daughter has been accepted to University and needs tuition; or you are taking your family on a cruise. Then you will want to find a loan higher than the remaining balance of your current mortgage loan.With this goal, you'll want However, if your mortgage rate is high now and you've held it for a long time, you could be able to accomplish your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you want to pull out a portion of your home equity to consolidate additional debt? Yes you can! If you have the home equity for it, taking care of other high interest debt (such as home equity loans, student loans, or credit cards) means you can possible save several hundred dollars a month.
Paying it off Sooner
Are you planning to fatten up your equity faster, and pay your mortgage loan off more quickly? Consider refinancing with a short-term loan, like a 15-year mortgage. Even though your monthly payment amount will usually be more, you will save on interest; so your equity will rise up faster. However, if you have had your existing thirty-year loan for a number of years and the remaining balance is rather low, you may be do this without raising your monthly mortgage payment — it's even possible to save! To help you determine your options and the many benefits in refinancing, please contact us at (440) 234-9660. We will help you reach your goals!
Want to know more about refinancing your home? Give us a call: (440) 234-9660.