Loan Programs

Selecting the Right Refinancing Program for You


While it may appear sometimes that there are more loan programs than there are applicants, this is not the case. We can assist you in qualifying for a refinance loan program that is appropriate for your particular situation by calling (603) 893-6616. What do you wish to achieve through the refinancing process? Keep the following considerations in mind as you begin the decision making process.

Lowering Your Payments

You intend to refinance in order to reduce your mortgage rate and hence your monthly mortgage payment. You may find that a fixed-rate loan with a low-interest rate is the ideal solution. There is a possibility that you now hold a fixed rate mortgage with greater interest rates, or that you hold an ARM - adjustable rate mortgage - where the rate of interest varies. The interest rate on a fixed rate mortgage loan remains the same, low even when interest rates rise, unlike an adjustable-rate mortgage. Especially if you do not intend to move within the next five years, a fixed-rate mortgage is a good choice. If you are planning to sell your home more quickly, you may want to consider an adjustable-rate mortgage (ARM) with a low initial rate in order to achieve a reduced monthly payment amount.

Getting Some Cash

Are you planning to take some of your equity from the refinance? Maybe you are in need of home repairs, you need to pay for your child's college tuition, or you would like to take a dream vacation. For this purpose, you will need to be able to qualify for a loan that is greater than the balance remaining on your existing mortgage. With this objective in mind, you will want to be eligible for a mortgage program that is higher than the amount remaining on your current mortgage. It may not be possible to increase your mortgage payment, however, if you have had your existing mortgage for some time and/or if your interest rate is high.

Consolidating Your Debt

In order to consolidate additional debt, do you intend to cash out a portion of your home equity? Great idea! It is possible to save several hundred dollars per month if you have the home equity to make this work by paying off other debt with higher interest than your mortgage (for example, home equity loans, student loans, or credit cards).

Paying It Off Sooner

Would you like to build up equity in your home quicker, and pay off your mortgage sooner? Consider refinancing with a shorter-term loan, such as a 15-year mortgage. While your mortgage payments are generally higher than they used to be, you will be paying less interest and expanding your home equity faster. You may even be able to save money if you've held your existing thirty year mortgage for a long time and the loan balance is relatively low - it's even possible to do this without raising your monthly payment! Please call us at 6038936616 if you would like to learn more about the many benefits of refinancing. We would love to hear from you.

Questions about which loan program is right for you? Contact Omni today at (603) 893-6616!

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