Which Refinancing Option is Right for You?
When you are overwhelmed with so many options, it may seem like there are even more refinance programs than applicants! Contact us at (203) 526-9345 and we can help you qualify for the perfect refinance loan to fit your needs. surveying your choices, you can list your goals for the refinance.
Reducing Your Monthly Payments
Are achieving reduced payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the best loan program for you. Perhaps you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest varies. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your loan, even if interest rates rise. This can be particularly a wise idea if you don't think you'll be selling your home within the next 5 years or so. However, an ARM with a low intitial payment may be a wiser way to lower your payments if you see yourself moving in the near future.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. So you will need to get a loan above the remaining balance on your existing mortgage loan.In this case, you will want However, if your mortgage rate is currently high and you've had it for a long time, you may be able to accomplish your goals without making your mortgage payments higher.
Perhaps you hope to cash out some equity in your home (cash out) to use toward other debt. If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars in your budget each month.
Building up Equity More Quickly
Are you dreaming of paying your loan off sooner, while building up your home equity faster? Then, you want to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. The payments will probably be more than with the longer term loan, but the pay-off is: you will pay quite a bit less interest and can build up equity more quickly. But, you may be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is low enough. You could even pay less! To help you figure out your options and the multiple benefits of refinancing, please call us at (203) 526-9345. We are here for you.
Want to know more about refinancing your home? Call us at (203) 526-9345.