Refinancing: Which Loan Program is for You?
There are not as many refinance loan programs as there are applicants, but at times it seems like it! Call us at (203) 526-9345 and we'll help you qualify for the best loan program for your needs. In order to review your options, you can list what you want to achieve with your refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a wise choice for you. Perhaps you now hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even when interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise loan option. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate to get lower mortgage payments.
Are you hoping to cash out some of your equity in your refinance? Your home needs renovating; your daughter has gone to University and needs tuition; or you are taking your family on a cruise. In this case, you need to get a loan above the balance remaining of your present mortgage.With this goal, you need If you've had your current mortgage loan for quite a while and/or have a loan with a high interest rate, you might\could be able to do this without increasing your monthly payment.
Do you want to cash out a portion of your equity to consolidate other debt? Yes you can! If you own any higher interest debts (like credit cards or car loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have the right amount of home equity.
Switching to a Shorter Term Loan
Do you want to build up equity quicker, and pay off your mortgage more quickly? Then, you need to find out about refinancing to a short term mortgage - like a fifteen-year loan. Your mortgage payments will probably be more than they were with a longer term mortgage loan, but in exchange, you will pay considerably less interest and can build up equity quicker. But, you may be able to switch without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the remaining balance is somewhat low. You may even make it lower! To help you figure out your options and the multiple benefits in refinancing, please contact us at (203) 526-9345. We are here for you.
Want to know more about refinancing your home? Call us: (203) 526-9345.