Which Refinancing Option is Best 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 program that can fit your situation the best. Contact us at 603-893-6616 to begin the process. There are some general things to have in mind as you review your options.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan might be a good choice for you. Maybe you currently have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Even if rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in that low interest rate for the term of your mortgage. If you are planning to stay in your home for about five more years, a fixed rate mortgage may be a particulary good choice for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced payments.
Refinancing to Cash Out
Are you refinancing mainly to pull out some of your equity for an infusion of cash? Perhaps you're dreaming of a cruise; you have to pay college tuition for your child; or you are planning some home improvements. In this case, you need to apply for a loan for more than the balance remaining on your current mortgage loan.Then you'll need However, if your interest rate is currently high and you've held it for quite a few years, you could be able to reach your goals without making your mortgage payments increase.
Do you want to cash out some of your home equity to consolidate additional debt? Great idea! If you have the equity in your home for it, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars monthly.
Paying it off Sooner
Are you planning to fatten up your equity faster, and pay off your mortgage more quickly? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. You will be paying less interest and growing your home equity more quickly, although your payments will likely be higher than they were. On the other hand, if your existing long-term mortgage has a low remaining balance, and was closed a number of years ago, you may even be able to make the switch without paying more each month. To help you figure out your options and the numerous benefits in refinancing, please contact us at 603-893-6616. We are here for you.
Want to know more about refinancing? Give us a call: 603-893-6616.