Selecting a Refinancing Option

The huge number of refinance options available to borrowers is truly breathtaking. Call us at 603-893-6616 and we will help you qualify for the best refinance program for your financial situation. There are some general things to keep in mind as you review your choices.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, the best choice might be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set the low rate for the life of your mortgage. If you are planning to live in your home for about five more years, a fixed rate loan may be an especially good option for you. 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 lower monthly payments.

Cashing Out

Are you refinancing mainly to "cash out" some home equity? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you are updating your kitchen. Then you'll want to find a loan above the remaining balance of your current mortgage.In this case, you'll need If you've had your current mortgage for a long time and/or have a mortgage with a high interest rate, you might\could be able to do this without making your monthly payment higher.

Consolidating Your Debt

Perhaps you'd like to pull out a portion of the equity in your home (cash out) to use toward other debt. If you have the home equity 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 may be able to save hundreds of dollars a month.

Paying it off Faster

Do you hope to build up equity quicker, and have your mortgage paid off more quickly? Consider refinancing with a short-term loan, often a 15-year mortgage. You will be paying less interest and increasing your equity more quickly, even though your monthly payments will generally be bigger than you were paying. Conversely, if your current long-term mortgage loan has a low balance remaining, and was closed a while ago, you may even be able to make the move without paying more each month. To help you determine your options and the numerous benefits of refinancing, please call us at 603-893-6616. We are here for you.

Curious about refinancing? Call us at 603-893-6616.