Choosing a Refinancing Loan
Even though it seems like it sometimes, there are not as many loan programs as there are borrowers! We can guide you to find the loan program that can fit your needs the best. Call us at (443) 619-7900 to get started. There are several questions to ask yourself as you look at your options.
Making Your Payments Lower
Are achieving better mortgage payments and a lower rate your main refinance goals? If so, your best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even when interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. This is particularly a good choice if you aren't planning a move within the next five years or so. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate to get lower monthly payments.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? Maybe you need to pay for home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. In this case, you will need to apply for a loan above the balance remaining on your existing mortgage loan.So you want to qualify for a loan program for a bigger amount than the remaining balance on your existing mortgage loan. You may not increase your mortgage payemnt, however, if you have had your existing loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Maybe you hope to pull out some of the equity in your home (cash out) to put toward other debt. If you have the equity in your home for it, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars monthly.
Building up Equity Faster
Do you hope to build up home equity more quickly, and pay off your mortgage faster? In that case, you want to find out about refinancing to a short term mortgage loan - like a fifteen-year loan. The monthly payments will probably be more than with a longer term mortgage, but the pay-off is: that you will pay quite a bit less interest and can build up equity more quickly. Conversely, if your existing longer term mortgage loan has a small balance remaining, and was closed a while ago, you might 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.
Want to know more about refinancing? Call us at (443) 619-7900.