Selecting a Refinancing Loan
Although it seems like it at times, there aren't as many refinance options as there are applicants! Call us at (443) 619-7900 and we can match you with the refinance loan program that fits you best. There are some general things to keep in mind as you review your options.
Lowering Your Payments
Are achieving reduced monthly payments and an improved rate your main refinance goals? Then the best choice could be a low fixed-rate loan. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great loan option. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Refinancing to Cash Out
Is your refinance goal primarily to pull out some equity for an infusion of cash? It could be you need to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. So you will need to get a loan for more than the balance remaining on your present mortgage.With this goal, you want You may not increase your monthly payemnt, however, if you have had your current mortgage loan for a long time, and/or your loan interest rate is high.
Do you want to pull out some of your equity to consolidate additional debt? Yes you can! If you have any debt with high interest (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of equity.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan more quickly, while building up your equity quicker? Then, you'll need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. You will be paying less interest and increasing your home equity faster, although your mortgage payments will usually be bigger than they were. On the other hand, if your existing long-term mortgage has a low balance remaining, 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 multiple benefits of refinancing, please contact us at (443) 619-7900. We are here for you.
Curious about refinancing your home? Call us: (443) 619-7900.