Which Refinancing Loan Program is Right for You?
When you are overwhelmed with so many options, it may seem like there are even more loan programs than borrowers! Call us at 719-357-6601 and we can match you with the refinance program that fits you best. surveying your options, you will need to determine what you want to achieve with the refinance.
Making Your Payments Lower
Are getting reduced mortgage payments and an improved rate your main refinance goals? In that case, a low, fixed rate loan may be the right loan program for you. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if rates come up later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in the low rate for the life of your mortgage. This can be particularly a good option if you don't expect to move within the next 5 years or so. However, an ARM with a initial low payment may be a smarter way to reduce your payments if you plan on moving in the next few years.
Are you hoping to cash out some of your home equity in your refinance? Your home needs new carpet; your son has been accepted to college and needs tuition money; or you have a special family vacation planned. So you want to get a loan above the balance remaining on your current mortgage loan.With this goal, you will want to qualify for a loan program for a higher amount than the balance remaining on your present mortgage. If you've had your current mortgage for a long time and/or have a mortgage whose interest rate is high, you may be able to do this without making your monthly payment higher.
Maybe you'd like to cash out some equity in your home (cash out) to use toward other debt. If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars per month.
Building up Equity Faster
Are you dreaming of paying your loan off more quickly, while beefing up your home equity more quickly? In that case, you want to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. You will be paying less interest and growing your home equity more quickly, even though your mortgage payments will generally be bigger than you were paying. But, you might be able to make the change without much increase in your monthly payment if your longer term mortgage loan was closed a while back, and the balance remaining is small. You could even make it lower! To help you determine your options and the many benefits of refinancing, please contact us at 719-357-6601. We can help you reach your goals!
Curious about refinancing your home? Give us a call at 719-357-6601.