Selecting a Refinancing Loan
The huge number of refinance options available can be overwhelming. Contact us at 603-893-6616 and we'll help you qualify for the perfect loan program to fit your situation. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are getting reduced payments and an improved rate your main refinance goals? In that case, applying for a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage loan, even when interest rates rise. If you are not expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can particularly be a good 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 payments.
Is "cashing out" your primary purpose for refinancing? Your house needs new carpet; your daughter has gone to University and needs tuition; or you are planning a special vacation. So you need to find a loan for more than the remaining balance of your present mortgage loan.In that case, you want to qualify for a loan program for a higher amount than the balance remaining on your current mortgage loan. However, if your mortgage rate is high now and you've had it for quite a few years, you may be able to achieve your goals without making your mortgage payments increase.
Do you have other debt, maybe with a high interest rate, that you want to consolidate? If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars in your monthly budget.
Building up Equity More Quickly
Are you dreaming of paying your loan off sooner, while building up your equity faster? Then, you'll need to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. Even though your mortgage payments will probably be more, you can be paying less interest; so your home equity will rise up faster. Conversely, if your current longer term mortgage has a low remaining balance, and was closed a number of years ago, you may 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 to help you reach your goals!
Want to know more about refinancing? Call us at 603-893-6616.