Selecting a Refinancing Option

There are a huge number of refinancing options available to borrowers. Contact us at 603-893-6616 and we can match you with the refinance program that is ideal for you. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you begin your decision process.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even when rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low interest rate for the term of your loan. If you aren't expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great option. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get lower mortgage payments.

Getting Out some Cash

Is "cashing out" your main reason for your refinance? Your home needs improvements; your daughter has gone to college and needs tuition; or you have a special family vacation planned. With this in mind, you want to get a loan above the balance remaining of your present mortgage loan.With this goal, you need You might not increase your monthly payemnt, however, if you have had your existing mortgage loan for a number of years, and/or your loan interest rate is high.

Consolidating Debt

Do you have other debt, perhaps with a higher interest rate, that you need to consolidate? If you have the equity in your home for it, taking care of other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars monthly.

Paying it off Sooner

Do you need to build up home equity quicker, and pay off your mortgage sooner? You should consider refinancing to a shorterterm loan, like a 15-year mortgage loan. You will be paying less interest and increasing your home equity faster, even though your mortgage payments will generally be bigger than they were. However, if you've held your existing 30-year mortgage loan for a number of years and the remaining balance is relatively low, you might be able to do this without increasing your mortgage payment — it's even possible to save! To help you figure out your options and the numerous benefits of refinancing, please call us at 603-893-6616. We are here for you.

Want to know more about refinancing your home? Call us: 603-893-6616.