Which Refinancing Option is Right for You?
The huge number of refinance options available to borrowers can be overwhelming. Call us at (440) 234-9660 and we will match you with the refinance loan program that best fits you. What are your reasons for refinancing? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan may be a wise option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low rate for the life of your loan. A fixed-rate mortgage can be especially a good idea if you don't think you'll be moving within the next five years or so. However, an ARM with a initial low payment may be a wiser way to reduce your payments if you plan on moving in the near future.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? It could be you want to make home improvements, take care of your college kid's tuition, or go on a special family vacation. Then you'll need to get a loan higher than the balance remaining on your current mortgage loan.Then you want However, if your loan interest rate is high now and you've held it for quite a few years, you could be able to accomplish your goals without making your mortgage payments bigger.
Perhaps you want to cash out some equity in your home (cash out) to use toward other debt. If you have a fair amount of home equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) could be able to save you a chunk of money each month.
Switching to a Shorter Term Loan
Are you wanting to fatten your equity faster, and pay your mortgage off more quickly? You should consider refinancing to a short-term loan, often a 15-year mortgage. Although your monthly payments will probably be more, you will save on interest; so your home equity will rise up faster. But, you could be able to make the change without much increase in your monthly mortgage payment if your long term mortgage loan was closed a while back, and the balance remaining is small. You may even make it lower! To help you understand your options and the many benefits of 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 at (440) 234-9660.