Which Refinancing Loan Program is Best for You?
There aren't as many refinance loan programs as there are borrowers, but it feels like it sometimes! Call us at (203) 526-9345 and we can match you with the refinance program that is ideal for your needs. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? Then your best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage, even if interest rates rise. If you are planning to stay in your home for about five more years, a fixed-rate loan may be an especially good fit for you. However, if you do see yourself selling your home in the near future, an ARM with a small initial rate could be the ideal way to lower your monthly payments.
Are you hoping to cash out some of your equity with your refinance? Perhaps you're going on a much needed vacation; you have to pay college tuition for your child; or you are updating your kitchen. So you need to find a loan for more than the balance remaining of your present mortgage.Then you want However, if your loan interest rate is currently high and you have held it for a long time, you may be able to reach your goals without a rise in your mortgage payment.
Do you have other debt, maybe with a high interest rate, that you'd like to consolidate? If you hold some higher interest debts (such as credit cards or car loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have enough equity.
Building up Equity More Quickly
Are you hoping to fatten up your home equity faster, and pay off your mortgage loan sooner? You should consider refinancing to a short-term loan, often a 15-year mortgage. The monthly payments will likely be more than with the longer term mortgage loan, but in exchange, that you will pay considerably less interest and can build up equity more quickly. But, you might be able to make the change without a higher monthly payment if your long term mortgage was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you determine your options and the multiple benefits of refinancing, please call us at (203) 526-9345. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call: (203) 526-9345.