Refinancing: Which Option is for You?
Although it may seem like it at times, there aren't as many refinance loan options as there are borrowers! We can guide you to locate the refinance loan program that can fit your financial situation the best. Call us at (440) 234-9660 to begin the process. There are some general questions to ask yourself as you consider the choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, your best choice might be a low fixed-rate loan. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in the low interest rate for the life of your loan. If you plan to stay in your home for at least five more years, a fixed rate loan may be an especially good option for you. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced payments.
Is "cashing out" your main reason for your refinance? Your home needs improvements; your son has been accepted to college and needs tuition; or you are taking your family on a cruise. With this in mind, you will need to get a loan higher than the remaining balance on your current mortgage.In this case, you want If you've had your existing mortgage for a number of years and/or have a mortgage with high interest, you may be able to do this without increasing your monthly payment.
Do you want to pull out some home equity to consolidate additional debt? Yes you can! If you hold any higher interest debts (like credit cards or car 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 home equity built up to make it work.
Getting a Shorter Term Loan
Do you need to build up equity more quickly, and have your mortgage paid off faster? You should consider refinancing to a short-term loan, often a 15-year mortgage loan. The payments will probably be higher than with the long-term mortgage, but the pay-off is: that you will pay quite a bit less interest and will build up equity more quickly. However, if you have held your current 30-year mortgage for a long time and the loan balance is somewhat low, you may be able to do this without increasing your monthly payment — you may even be able to save! To help you determine your options and the numerous benefits of refinancing, please call us at (440) 234-9660. We are here for you.
Curious about refinancing your home? Give us a call: (440) 234-9660.