Refinancing: Which Program is for You?
When you are overwhelmed with so many choices, it may seem like there are even more refinance loan programs than borrowers! We can help you find the refinance program that will fit your financial situation the best. Call us at 603-893-6616 to begin the process. What are your goals for refinancing? Considering in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are achieving better payments and a lower rate your main refinance goals? In that case, applying for a low, fixed-rate loan may be a wise option for you. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — in which the rate of interest varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the loan, even as interest rates rise. A fixed-rate mortgage is especially a wise choice if you don't think you'll be moving within the next five years or so. However, if you can see yourself moving within several years, an ARM with a small initial rate might be the ideal way to reduce your monthly payment.
Getting Out some Cash
Is "cashing out" your primary purpose for refinancing? Your home needs improvements; your son has been accepted to University and needs tuition; or you are taking your family on a cruise. So you will need to get a loan for more than the balance remaining of your current mortgage.In that case, you'll You will be looking for a loan for a higher amount than the remaining balance on your present mortgage in that case. You may not increase your mortgage payemnt, however, if you have had your existing mortgage loan for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Maybe you'd like to cash out some home equity (cash out) to put toward other debt. If you have the equity in your home to make it work, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you may be able to save several hundred dollars monthly.
Building up Equity Faster
Are you dreaming of paying off your loan sooner, while beefing up your equity quicker? Then, you'll want to find out about refinancing to a short term mortgage - for example, a fifteen-year loan. You will be paying less interest and growing your home equity faster, even though your mortgage payments will usually be more than you have been paying. But, you may be able to switch without a bigger monthly payment if your long term mortgage loan was closed a while ago, and the balance remaining is somewhat low. You could even make it lower! To help you determine your options and the multiple 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 at 603-893-6616.