Which Refinancing Loan Program is Best for You?
Although it seems like it at times, there aren't as many refinance loan choices as there are borrowers! Contact us at 603-893-6616 and we will match you with the refinance program that fits you best. There are several things to keep in mind as you review the choices.
Reducing Your Monthly Payments
Are getting lower mortgage payments and an improved rate your main refinance goals? Then the best choice could 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. Even if interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are planning to live in your home for about five more years, a fixed rate mortgage may be a particulary good fit for you. On the other hand, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate could be the ideal way to reduce your monthly payments.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? It could be you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. So you need to find a loan above the balance remaining of your present mortgage.In this case, you You'll want to get a loan for more than the balance remaining with your existing mortgage in that case. However, if your interest rate is currently high and you've held it for a long time, you may be able to accomplish your goals without making your mortgage payments bigger.
Consolidating Your Debt
Perhaps you want to pull out a portion of the equity (cash out) to use toward other debt. If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars in your monthly budget.
Building up Equity Faster
Are you dreaming of paying off your loan faster, while beefing up your equity faster? You should consider refinancing with a short-term loan, like a 15-year mortgage loan. Although your mortgage payments will usually be increased, you will be paying less interest; so your home equity will build up faster. However, if you've held your existing 30-year mortgage for a number of years and the loan balance is relatively low, you could be able to do this without increasing your monthly mortgage payment — it's even possible to save! To help you understand your options and the multiple benefits in refinancing, please contact us at 603-893-6616. We will help you reach your goals!
Curious about refinancing your home? Call us: 603-893-6616.