Which Refinancing Program is Best for You?
Even though it seems like it at times, there are not as many refinance loan programs as there are borrowers! Contact us at (440) 234-9660 and we will match you with the refinance program that fits you best. In the interest of looking at your options, you will need to think about your goals for your refinance.
Reducing Your Monthly Payments
Are achieving reduced monthly payments and a lower rate your main reasons for refinancing? If so, the best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even if rates rise later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low interest rate for the life of your loan. If you are not expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a wise choice. On the other hand, if you can see yourself selling your home before too long, an adjustable rate mortgage with a low initial rate might be the best way to lower your monthly payment.
Getting Out some Cash
Is your refinance goal primarily to pull out some home equity for an infusion of cash? Perhaps you need to make home improvements, pay your child's college tuition bill, or take a cruise. With this in mind, you'll need to find a loan higher than the remaining balance of your current mortgage loan.So you want to qualify for a loan program for a higher number than the balance remaining on your present mortgage. You might not increase your mortgage payemnt, however, if you've had your current mortgage for a long time, and/or your loan interest rate is high.
Do you want to cash out some of your equity to consolidate additional debt? Good plan! If you have the equity in your home for it, taking care of other high interest debt (such as home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars each month.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan more quickly, while building up your home equity more quickly? Then, you'll need to look into refinancing to a short term mortgage loan - like a fifteen-year loan. Your monthly payments will likely be higher than with a long-term loan, but the pay-off is: that you will pay substantially less interest and can build up equity more quickly. However, if you've had your existing thirty-year mortgage for a long time and the remaining balance is somewhat low, you might 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 numerous benefits of refinancing, please contact us at (440) 234-9660. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call at (440) 234-9660.