Which Refinancing Loan Program is Best for You?
There are a huge number of refinancing programs available to borrowers. We can guide you to choose the refinance program that will fit your financial situation the best. Call us at 603-893-6616 to get started. What are your goals for refinancing? Considering in mind the following 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 the right loan program for you. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — in which the interest rate varies. Even if rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you lock in the low rate for the life of your loan. If you are not expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a wise option. On the other hand, if you can see yourself moving in the near future, an ARM mortgage with a low initial rate may be the best way to lower your monthly payment.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you need to get a loan above the balance remaining on your existing mortgage loan.Then you'll want If you've had your current mortgage loan for a long time and/or have a mortgage with high interest, you may be able to do this without increasing your monthly payment.
Do you want to cash out some home equity to consolidate additional debt? Good plan! If you have the home equity to make it work, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars monthly.
Paying it off Sooner
Do you want to build up home equity quicker, and pay off your mortgage sooner? Consider refinancing to a short-term loan, often a 15-year mortgage loan. You will be paying less interest and growing your home equity faster, even though your payments will likely be bigger than they were. On the other hand, if your existing longer term mortgage has a low balance remaining, and was closed a number of years ago, you might be able to make the move without paying more each month. To help you determine your options and the many benefits of refinancing, please contact us at 603-893-6616. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call at 603-893-6616.