Refinancing: Which Loan Program is for You?

When you are overwhelmed with all the choices, it may seem as if there are even more loan programs than borrowers! We can help you find the loan program that will fit your situation the best. Call us at 603-893-6616 to get things started. There are several things to bear in mind while you look at your options.

Lowering Your Payments

Are getting reduced mortgage payments and an improved rate your main reasons for refinancing? Then your best choice might be a low fixed-rate loan. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the rate of interest 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. If you are expecting to live in your home for about five more years, a fixed rate mortgage may be an especially good fit for you. However, if you can see yourself moving in the near future, an adjustable rate mortgage with a small initial rate may be the best way to reduce your monthly payment.

Cashing Out

Is your refinance goal mainly to "cash out" some home equity? Your home needs renovating; your daughter has been accepted to University and needs tuition; or you are planning a special vacation. In this case, you will need to look for a loan for more than the balance remaining of your current mortgage loan.So you'll want If you've had your existing mortgage for quite a while and/or have a mortgage with a high interest rate, you might\could be able to do this without making your mortgage payment bigger.

Consolidating Your Debt

Do you want to cash out some home equity to consolidate other debt? Excellent idea! If you have enough home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might help save you a chunk of money each month.

Paying it off Faster

Are you dreaming of paying your loan off faster, while beefing up your equity quicker? You should consider refinancing with a shorterterm loan, like a 15-year mortgage. Even though your monthly payments will usually be more, you can save on interest; so your equity amount will rise up faster. However, if you've had your current thirty year loan for a number of years and the loan balance is somewhat low, you might be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you understand your options and the many benefits of refinancing, please call us at 603-893-6616. We are here for you.

Want to know more about refinancing your home? Call us: 603-893-6616.