Refinancing: Which Program is for You?
There are a huge number of refinancing programs available to borrowers. Call us at 603-893-6616 and we can match you with the loan program that is best for you. surveying your options, you should think about your goals for the refinance.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then your best option may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage, even if interest rates rise. If you aren't planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a wise loan option. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Is your refinance goal primarily to "cash out" some home equity? Your home needs improvements; your son has been accepted to college and needs tuition money; or you are taking your family on a cruise. With this in mind, you'll need to find a loan above the remaining balance on your present mortgage loan.So you'll want You may not have an increase in your mortgage payemnt, however, if you have had your existing mortgage for a long time, and/or your loan interest rate is high.
Do you want to cash out some home equity to consolidate additional debt? Good plan! If you own any higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have enough home equity.
Building up Equity More Quickly
Are you planning to fatten your home equity faster, and pay your mortgage off sooner? If this is your wish, the refinance can switch you to a loan program with a shorter term, such as a 15 year loan. The payments will likely be higher than they were with your long-term mortgage, but in exchange, you will pay considerably less interest and will build up equity quicker. However, if you've had your existing thirty year loan for a number of years and the loan balance is rather low, you could be able to do this without increasing your monthly mortgage payment — you may even be able to save! To help you figure out your options and the numerous benefits of refinancing, please call us at 603-893-6616. We are here for you.
Curious about refinancing? Call us: 603-893-6616.