Refinancing: Which Option is for You?

There are an enormous number of refinancing options available to borrowers. Call us at 6038936616 and we will match you with the refinance program that is best for you. There are some general questions to ask yourself while you review your choices.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan could be a wise choice for you. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can particularly be a wise choice. On the other hand, if you can see yourself selling your home before too long, an adjustable rate mortgage with a low initial rate may be the ideal way to bring down your monthly payment.

Getting Out some Cash

Is your refinance goal mainly to "cash out" some home equity? Perhaps you want to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. With this in mind, you need to get a loan above the balance remaining on your current mortgage loan.So you'll You'll want to qualify for a loan for more than the remaining balance with your present mortgage in this case. You might not have an increase in your mortgage payemnt, however, if you have had your current mortgage loan for a while, and/or your loan interest rate is high.

Debt Consolidation

Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you have a fair amount of 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 lot of cash each month.

Paying it off Faster

Are you dreaming of paying your loan off faster, while building up your equity more quickly? If this is your goal, your refinance mortgage can switch you to a mortgage program with a short, such as a 15 year loan. Even though your monthly payment amount will probably be increased, you will be paying less interest; so your equity amount will build up faster. On the other hand, if your current longer term loan has a low remaining balance, and was closed a while ago, you could be able to make the move without paying more each month. To help you understand your options and the multiple benefits of refinancing, please contact us at 6038936616. We are here for you.

Curious about refinancing your home? Give us a call at 6038936616.

Omni Mortgage Company, Inc.
NMLS#: 1954

Michael Loffredo NMLS 12192

224 Main Street Suite 1A
Salem, NH 03079-3187