Refinancing: Which Loan Program is for You?
The number of refinance options available to borrowers can be overwhelming. Call us at (440) 234-9660 and we will match you with the refinance program that is best for you. What are your goals for your refinance loan? Considering 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? Then a low, fixed rate loan may be the right option for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you set the low rate for the term of your loan. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can especially be a great loan option. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower payments.
Is "cashing out" your primary purpose for refinancing? Your home needs new carpet; your son has gone to college and needs tuition money; or you are taking your family on a cruise. Then you will want to apply for a loan above the remaining balance on your present mortgage loan.Then you will want to qualify for a loan for a higher number than the balance remaining on your current mortgage. You may not increase your mortgage payemnt, however, if you've had your existing loan for a long time, and/or your interest rate is high.
Perhaps you'd like to cash out some home equity (cash out) to use toward other debt. If you have some higher interest debts (such as credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough home equity.
Paying it off Faster
Are you dreaming of paying your loan off faster, while beefing up your equity more quickly? If this is your wish, your refinance mortgage can switch you to a mortgage loan program with a shorter term, like a 15 year loan. You will be paying less interest and increasing your home equity more quickly, although your payments will generally be higher than they were. However, if you have held your existing 30-year loan for a long time and the remaining balance is somewhat low, you could be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you determine your options and the multiple benefits of refinancing, please call us at (440) 234-9660. We would love to help you reach your goals!
Curious about refinancing? Give us a call: (440) 234-9660.