Choosing a Refinancing Option
The number of refinance options available is truly breathtaking. Call us at (440) 234-9660 and we will match you with the refinance program that fits you best. What are your goals for refinancing? Considering in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then your best option could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your loan, even if interest rates rise. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can especially be a wise option. However, an ARM with a low intitial payment may be a better way to reduce your monthly payments if you plan on moving within the near future.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you are planning some home improvements. So you will need to find a loan higher than the balance remaining of your current mortgage.In this case, you You will be looking for a loan for a bigger amount than the current balance on your current mortgage in this case. However, if your loan interest rate is currently high and you've held it for quite a few years, you could be able to accomplish your goals without making your monthly payments increase.
Do you have other debt, perhaps with a high interest rate, that you want to consolidate? If you hold some higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of equity.
Paying it off Sooner
Do you hope to build up home equity more quickly, and have your mortgage paid off faster? If this is your plan, the refinance loan can change you to a mortgage program with a shorter term, for example: a 15 year loan. You will be paying less interest and growing your equity faster, although your monthly payments will likely be higher than they were. However, if you've had your existing thirty-year loan for a long time and the remaining balance is relatively low, you might be able to do this without raising your mortgage payment — it's even possible to save! To help you determine your options and the numerous benefits in refinancing, please contact us at (440) 234-9660. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call: (440) 234-9660.