Choosing a Refinancing Program
Even though it may seem like it at times, there aren't as many refinance choices as there are applicants! Contact us at (203) 526-9345 and we can work with you to qualify you for the best refinance loan to fit your situation. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan could be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your loan, even if interest rates rise. This kind of loan can be especially a good idea if you don't expect to sell your home within the next five years or so. On the other hand, if you do see yourself selling your home within several years, an ARM with a small initial rate may be the ideal way to reduce your monthly payments.
Getting Out some Cash
Is "cashing out" your primary reason for refinancing? Perhaps you want to update your kitchen, pay your child's college tuition bill, or go on a special family vacation. In this case, you need to get a loan above the balance remaining on your present mortgage.So you will want If you've had your current mortgage loan for a long time and/or have a high interest mortgage, you may be able to do this without making your monthly payment bigger.
Do you have other debt, maybe with a high interest rate, that you'd like to consolidate? If you have built up some equity, taking care of other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a lot of cash every month.
Building up Equity More Quickly
Are you dreaming of paying your loan off sooner, while building up your home equity quicker? Consider refinancing to a short-term loan, like a 15-year mortgage. You will be paying less interest and increasing your equity more quickly, although your payments will likely be higher than they were. However, if you have held your existing thirty-year loan for a number of years and the remaining balance is somewhat low, you might be do this without raising your mortgage payment — you may even be able to save! To help you understand your options and the many benefits in refinancing, please contact 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.