Which Refinancing Program is Right for You?
The huge number of refinance options available to borrowers can be overwhelming. Call us at 603-893-6616 and we can match you with the refinance program that best fits you. What are your goals for your refinance loan? Keeping in mind the following will help you begin your decision process.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even as interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is especially a wise option if you aren't planning a move within the next five years or so. However, an ARM with a low intitial payment could be a better way to reduce your mortgage payments if you see yourself moving in the next few years.
Is your refinance goal primarily to pull out some of your equity for an infusion of cash? Maybe you're dreaming of a cruise; you have to pay college tuition for your child; or you plan to renovate your home. So you need to find a loan higher than the balance remaining on your existing mortgage.Then you'll want to find a loan for a bigger amount than the remaining balance on your current mortgage. However, if your mortgage rate is currently high and you've had it for a long time, you could be able to achieve your goals without making your monthly payments rise.
Do you want to pull out a portion of your home equity to consolidate additional debt? Yes you can! If you have enough equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of cash every month.
Paying it off Faster
Are you dreaming of paying your loan off more quickly, while beefing up your home equity more quickly? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. You will be paying less interest and growing your home equity more quickly, although your monthly payments will likely be bigger than they were. Conversely, if your existing longer term mortgage has a low balance remaining, and was closed a while 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 of refinancing, please contact us at 603-893-6616. We are here for you.
Want to know more about refinancing your home? Call us at 603-893-6616.