Which Refinancing Loan Program is Best for You?
There are an enormous number of refinancing options available to borrowers. Contact us at (440) 234-9660 and we will work with you to qualify you for the right refinance loan program for your situation. In the interest of looking at your choices, you need to determine what you want to achieve with the refinance.
Making Your Payments Lower
Are getting reduced monthly payments and a better rate your main refinance goals? In that case, the best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even as interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you plan to live in your home for about five more years, a fixed-rate loan may be a particulary good choice for you. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Refinancing to Cash Out
Are you hoping to cash out some of your equity with your refinance? It could be you're planning a special vacation; you have to pay college tuition for your child; or you plan to renovate your home. With this in mind, you will want to look for a loan above the remaining balance on your present mortgage.Then you'll want to qualify for a loan for a higher number than the remaining balance on your current mortgage. However, if your mortgage rate is high now and you have held it for a long time, you may be able to reach your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you hold other debt, perhaps with higher interest, that you need to consolidate? If you have the home equity to make it work, paying off other high interest debt (such as credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars in your monthly budget.
Paying it off Faster
Are you wanting to fatten up your home equity faster, and pay your mortgage loan off more quickly? In that case, you want to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. The monthly payments will likely be more than they were with a longer term mortgage, but in exchange, that you will pay considerably less interest and can build up equity more quickly. Conversely, if your existing longer term mortgage has a small balance remaining, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you determine your options and the numerous benefits of refinancing, please contact us at (440) 234-9660. We will help you reach your goals!
Want to know more about refinancing your home? Call us at (440) 234-9660.