Selecting a Refinancing Option
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When you are overwhelmed with all the options, it may seem as if there are even more loan programs than borrowers! Call us at (478) 746-2063 and we will match you with the refinance loan program that is ideal for you. In order to review your choices, you should consider what you want to achieve with the refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal loan program for you. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage loan will remain 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 good option. However, an ARM with a initial low payment could be a better way to reduce your payments if you expect to move within the near future.
Is "cashing out" your main reason for refinancing? Your home needs renovating; your son has gone to University and needs tuition; or you have a special family vacation planned. In this case, you'll want to get a loan for more than the remaining balance of your present mortgage loan.With this goal, you want If you've had your current mortgage for a long time and/or have a loan 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 put toward other debt. If you have a fair amount of home equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a chunk of cash each month.
Paying it off Sooner
Are you planning to fatten up your home equity faster, and get your mortgage paid off more quickly? If this is your wish, the refinance loan can change you to a loan program with a shorter term, such as a 15 year loan. You will be paying less interest and growing your equity faster, although your mortgage payments will usually be bigger than they were. But, you may be able to make the change without much increase in your monthly mortgage payment if your long term mortgage was closed a while back, and the balance remaining is low enough. You could even make it lower! To help you determine your options and the numerous benefits of refinancing, please call us at (478) 746-2063. We will help you reach your goals!
Curious about refinancing your home? Call us: (478) 746-2063.