Which Refinancing Option is Best for You?
There aren't as many loan programs as there are applicants, but at times it feels like it! Call us at 603-893-6616 and we can work with you to qualify you for the best refinance program for your financial needs. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good option. However, an ARM with a initial low payment may be a wiser way to lower your monthly payments if you see yourself moving within the near future.
Getting Out some Cash
Are you wanting to cash out some of your home equity with your refinance? Maybe you're planning a special vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you will need to qualify for a loan higher than the balance remaining of your current mortgage loan.With this goal, you want to find a loan for a higher amount than the balance remaining on your current mortgage loan. You may not have an increase in your monthly payemnt, however, if you have had your current mortgage for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to pull out a portion of your home equity to consolidate additional debt? Great plan! If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars in your budget each month.
Building up Equity Faster
Are you dreaming of paying your loan off faster, while beefing up your equity quicker? Then, you want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. Although your monthly payment amount will likely be increased, you will be paying less interest; so your home equity will build up faster. On the other hand, if your existing longer term loan has a low remaining balance, and was closed a number of years ago, you may even be able to make the switch without paying more each month. To help you determine your options and the multiple benefits in refinancing, please contact us at 603-893-6616. We can help you reach your goals!
Curious about refinancing your home? Give us a call: 603-893-6616.