Which Refinancing Loan Program is Best for You?
There are a huge number of refinancing options available to borrowers. We can guide you to select the refinance program that will fit your needs the best. Call us at 603-893-6616 to get things started. There are some general questions to ask yourself as you look at the choices.
Reducing Your Monthly Payments
Are achieving better monthly payments and a better rate your main reasons for refinancing? In that case, getting a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are expecting to stay in your home for about five more years, a loan with a fixed rate may be an especially good fit for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get lower payments.
Is "cashing out" your main reason for refinancing? Perhaps you want to pay for home improvements, pay your child's college tuition bill, or go on a special family vacation. In this case, you need to get a loan above the remaining balance of your present mortgage.Then you will You'll be looking for a loan for a bigger amount than the balance remaining on your present mortgage loan in this case. You might not increase your mortgage payemnt, however, if you've had your current mortgage loan for a number of years, and/or your interest rate is high.
Consolidating Your Debt
Do you want to cash out a portion of your equity to consolidate additional debt? Yes you can! If you have built up some equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might help save you a lot of cash every month.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan more quickly, while beefing up your home equity more quickly? If this is your hope, the refinance mortgage can switch you to a mortgage loan program with a shorter term, like a 15 year loan. You will be paying less interest and increasing your home equity faster, even though your monthly payments will generally be more than you have been paying. But, you might be able to switch without a higher monthly payment if your long term mortgage loan was closed a while back, and the balance remaining is low enough. You could even make it lower! To help you determine your options and the many benefits of refinancing, please contact us at 603-893-6616. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call: 603-893-6616.