Refinancing: Which Program is for You?
There are a huge number of refinancing programs available to borrowers. We can help you find the loan program that will fit your needs the best. Call us at (440) 234-9660 to get started. What are your goals for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are getting reduced payments and a lower rate your main reasons for refinancing? If so, a good option may be a low fixed-rate loan. Maybe you are now in a mortgage with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you close a fixed rate mortgage, you lock in the low interest rate for the term of your loan. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can especially be a great option. However, if you can see yourself selling your home within several years, an adjustable rate mortgage with a small initial rate could be the ideal way to bring down your monthly payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? Perhaps you need to update your kitchen, pay your child's college tuition bill, or take a cruise. In this case, you'll want to get a loan higher than the remaining balance on your current mortgage.Then you'll want to find a loan for a higher amount than the balance remaining on your existing mortgage. However, if your loan interest rate is high now and you've had it for quite a few years, you could be able to reach your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you hold other debt, perhaps with a higher interest rate, that you want to consolidate? If you have the equity in your home for it, taking care of other high interest debt (for example: credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars monthly.
Building up Equity More Quickly
Are you dreaming of paying your loan off faster, while building up your equity faster? In that case, you'll need to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. You will be paying less interest and growing your equity faster, even though your mortgage payments will generally be higher than they were. However, if you have had your existing 30-year mortgage loan for a long time and the loan balance is relatively low, you may be able to do this without raising your monthly payment — you may even be able to save! To help you determine your options and the numerous benefits of refinancing, please contact us at (440) 234-9660. We are here for you.
Curious about refinancing? Give us a call at (440) 234-9660.