Refinancing: Which Loan Program is for You?
When you are overwhelmed with all the options, it may seem like there are even more loan programs than applicants! Contact us at (440) 234-9660 and we will match you with the refinance program that is best for your needs. surveying your choices, you'll need to think about your goals for the refinance.
Making Your Payments Lower
Are getting reduced mortgage payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the best option for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can particularly be a good option. However, an ARM with a initial low payment may be a better way to lower your payments if you plan on moving in the next few years.
Refinancing to Cash Out
Is your refinance goal primarily to "cash out" some home equity? Maybe you want to update your kitchen, take care of your college kid's tuition, or take your family on a dream vacation. With this in mind, you'll want to get a loan above the balance remaining of your present mortgage loan.In this case, you need However, if your interest rate is high now and you've had it for quite a few years, you may be able to reach your goals without making your monthly payments rise.
Do you want to cash out some of your equity to consolidate additional debt? Excellent idea! 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 a month.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your equity quicker? You should consider refinancing with a shorterterm loan, like a 15-year mortgage. Your monthly payments will likely be higher than with a longer term mortgage, but the pay-off is: you will pay quite a bit less interest and can build up equity quicker. However, if you've held your current 30-year mortgage loan for a number of years and the remaining balance is somewhat low, you could be do this without raising your monthly payment — you might even be able to save! To help you figure out your options and the multiple benefits in refinancing, please call us at (440) 234-9660. We are here for you.
Curious about refinancing? Call us at (440) 234-9660.