Which Refinancing Loan Program is Best for You?
The huge number of refinance options available to borrowers is truly breathtaking. Contact us at (443) 619-7900 and we will help you qualify for the best refinance loan for your situation. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are getting reduced mortgage payments and an improved rate your main reasons for refinancing? If so, getting a low, fixed-rate loan might be a wise option for you. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. This kind of loan can be especially a wise idea if you don't think you'll be selling your home within the next five years or so. However, an ARM with a low intitial payment may be a wiser way to reduce your payments if you see yourself moving in the near future.
Refinancing to Cash Out
Are you planning to cash out some of your equity in your refinance? Maybe you need to pay for home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. Then you will need to get a loan above the balance remaining on your present mortgage.In that case, you will You'll be looking for a loan for a higher amount than the remaining balance with your present mortgage in this case. You may not have an increase in your mortgage payemnt, however, if you have had your existing mortgage loan for a long time, and/or your interest rate is high.
Do you want to cash out some home equity to consolidate additional debt? Yes you can! If you have built up some home equity, taking care of other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) may help save you a chunk of cash each month.
Getting a Shorter Term Loan
Do you need to build up equity quicker, and pay off your mortgage faster? In that case, you want to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. The mortgage payments will probably be higher than they were with your longer term loan, but the pay-off is: you will pay quite a bit less interest and can build up equity quicker. But, you may be able to make the change without a bigger monthly mortgage payment if your long term mortgage was closed a while ago, and the balance remaining is low enough. You may even pay less! To help you determine your options and the many benefits in refinancing, please contact us at (443) 619-7900. We are here for you.
Want to know more about refinancing your home? Call us at (443) 619-7900.