Selecting a Refinancing Loan
Although it seems like it sometimes, there are not as many refinance choices as there are applicants! Contact us at 603-893-6616 and we will match you with the refinance program that is ideal for your needs. surveying your options, you can list your goals for the refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a wise option for you. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the mortgage loan, even if interest rates rise. If you aren't expecting to sell your home in the near future (about five years), a fixed-rate mortgage can particularly be a wise option. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Are you hoping to cash out some of your equity in your refinance? Perhaps you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. With this in mind, you will want to apply for a loan for more than the remaining balance of your current mortgage loan.Then you want to need to get a loan program for a higher amount than the remaining balance on your present mortgage loan. If you've had your existing mortgage for a number of years and/or have a mortgage loan whose interest rate is high, you might\could be able to do this without making your monthly payment bigger.
Maybe you hope to cash out some of the home equity (cash out) to put toward other debt. If you have the home equity for it, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars in your monthly budget.
Switching to a Shorter Term Loan
Are you planning to fatten your home equity faster, and pay your mortgage loan off sooner? You should consider refinancing to a short-term loan, such as a 15-year mortgage. Even though your mortgage payments will likely be more, you will save on interest; so your equity will build up faster. But, you could be able to make the change without much increase in your monthly payment if your longer term mortgage was closed a while back, and the balance remaining is low. You may even pay less! To help you determine your options and the numerous benefits in refinancing, please call us at 603-893-6616. We are here for you.
Curious about refinancing? Give us a call at 603-893-6616.