Which Refinancing Program is Right for You?
There are not as many refinance loan programs as there are borrowers, but sometimes it feels like it! Contact us at 603-893-6616 and we will match you with the refinance loan program that best fits you. What are your goals for your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a good choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in that low rate for the term of your loan. This kind of loan is particularly a wise idea if you don't think you'll be selling your home within the next 5 years or so. On the other hand, if you can see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate might be the ideal way to bring down your monthly payment.
Is your refinance goal primarily to "cash out" some home equity? Maybe you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you'll need to find a loan above the balance remaining of your current mortgage.In this case, you will You will need to find a loan for more than the balance remaining on your present mortgage in this case. However, if your loan interest rate is high now and you've held it for quite a few years, you may be able to reach your goals without making your monthly payments rise.
Do you want to pull out some equity to consolidate other debt? Great plan! If you have any higher interest debts (such as credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough home equity.
Paying it off Sooner
Do you want to build up equity more quickly, and have your mortgage paid off sooner? You should consider refinancing with a short-term loan, such as a 15-year mortgage loan. You will be paying less interest and increasing your home equity more quickly, although your monthly payments will usually be bigger than you have been paying. However, if you have held your current thirty-year mortgage loan for a long time and the loan balance is relatively low, you might be able to do this without increasing your monthly mortgage payment — it's even possible to save! To help you understand your options and the multiple benefits of refinancing, please contact us at 603-893-6616. We are here for you.
Curious about refinancing your home? Call us at 603-893-6616.