Choosing a Refinancing Loan

Even though it seems like it sometimes, there aren't as many loan programs as there are applicants! Call us at 603-893-6616 and we will match you with the refinance loan program that fits you best. There are several things to keep in mind as you look at your options.

Reducing Your Monthly Payments

Are getting better monthly payments and an improved rate your main refinance goals? If so, applying for a low, fixed-rate loan could be a wise option for you. Maybe you are presently in a mortgage with a high, fixed interest rate, or a loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. This kind of loan is particularly a good option if you don't plan to sell your home within the next 5 years or so. On the other hand, if you do see yourself selling your home in the near future, an ARM with a small initial rate may be the ideal way to bring down your monthly payments.

Cashing Out

Are you planning to cash out some of your home equity with your refinance? Perhaps you need to pay for home improvements, pay your child's college tuition bill, or take a cruise. With this in mind, you will want to qualify for a loan for more than the balance remaining on your current mortgage.Then you'll want to find a loan program for a bigger number than the remaining balance on your present mortgage. However, if your mortgage rate is currently high and you have held it for a long time, you could be able to accomplish your goals without a rise in your mortgage payment.

Consolidating Your Debt

Do you have other debt, perhaps with a high interest rate, that you want to consolidate? If you have the home equity to make it work, taking care of other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars in your budget each month.

Paying it off Sooner

Do you hope to build up equity quicker, and pay off your mortgage faster? Consider refinancing with a shorterterm loan, often a 15-year mortgage loan. Although your monthly payments will likely be increased, you will save on interest; so your home equity will build up faster. But, you may be able to switch without much increase in your monthly mortgage payment if your long term mortgage loan was closed a while back, and the remaining balance is somewhat low. You may even pay less! To help you figure out your options and the numerous benefits in refinancing, please contact us at 603-893-6616. We are here for you.

Want to know more about refinancing? Give us a call at 603-893-6616.