Choosing a Refinancing Option
There are an enormous number of refinancing programs available to borrowers. Contact us at (440) 234-9660 and we'll help you qualify for the right refinance program to fit your financial situation. There are several things to keep in mind while you consider your choices.
Making Your Payments Lower
Are getting reduced mortgage payments and a better rate your main reasons for refinancing? If so, a good choice could be a low fixed-rate loan. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set the low rate for the life of your loan. A fixed-rate mortgage is especially a good choice if you aren't expecting a move within the next five years or so. However, an ARM with a initial low payment could be a better way to reduce your monthly payments if you expect to move in the next few years.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? Maybe you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you will need to get a loan above the remaining balance of your present mortgage loan.Then you need However, if your interest rate is currently high and you've had it for a long time, you could be able to reach your goals without making your monthly payments bigger.
Do you hold other debt, maybe with high interest, that you want to consolidate? If you have the equity in your home for it, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars in your monthly budget.
Building up Equity Faster
Are you dreaming of paying off your loan sooner, while building up your home equity faster? Then, you need to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. The payments will probably be more than they were with a longer term loan, but in exchange, you will pay substantially less interest and will build up equity quicker. However, if you have held your existing thirty-year loan for a number of years and the loan balance is somewhat low, you might be able to do this without increasing your monthly mortgage payment — it's even possible to save! To help you determine your options and the many benefits in refinancing, please contact us at (440) 234-9660. We are here for you.
Want to know more about refinancing your home? Give us a call: (440) 234-9660.