Refinancing: Which Program is for You?
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than borrowers! We can guide you to find the refinance loan program that will fit your financial situation the best. Call us at 603-893-6616 to get things started. What are your goals for refinancing? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, the best option might be a low fixed-rate loan. Maybe you currently have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates get higher later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low interest rate for the life of your mortgage. This is especially a wise choice if you aren't expecting a move within the next 5 years or so. However, if you do 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.
Getting Out some Cash
Are you wanting to cash out some of your home equity with your refinance? Perhaps you want to update your kitchen, pay your child's college tuition bill, or go on a special family vacation. So you want to qualify for a loan above the remaining balance on your existing mortgage loan.With this goal, you will want to find a loan program for a higher amount than the remaining balance on your existing mortgage. If you've had your current mortgage loan for a number of years and/or have a mortgage with high interest, you may be able to do this without making your monthly payment higher.
Consolidating Your Debt
Do you have other debt, maybe with high interest, that you'd like to consolidate? If you have a fair amount of equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a chunk of money every month.
Paying it off Sooner
Are you planning to fatten up your equity faster, and pay your mortgage loan off sooner? If this is your goal, your refinance mortgage can move you to a mortgage program with a shorter term, for example: a 15 year loan. Your payments will likely be more than with the long-term mortgage loan, but in exchange, you will pay considerably less interest and can build up equity more quickly. However, if you've had your current 30-year loan for a long time and the remaining balance is relatively low, you may be able to do this without raising your monthly mortgage payment — you might even be able to save! To help you determine your options and the numerous benefits in refinancing, please call us at 603-893-6616. We are here for you.
Want to know more about refinancing? Give us a call: 603-893-6616.