Which Refinancing Option is Best for You?
Even though 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'll help you qualify for the best refinance program for your situation. surveying your options, you should think about what you want to achieve with the refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you lock in the low interest rate for the term of your mortgage. If you aren't planning on moving in the near future (about five years), a fixed rate mortgage loan can particularly be a wise loan option. However, an ARM with a low intitial payment may be a wiser way to lower your mortgage payments if you expect to move within the near future.
Are you wanting to cash out some of your home equity in your refinance? Maybe you need to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. In this case, you need to look for a loan above the balance remaining on your existing mortgage loan.So you will want However, if your mortgage rate is currently high and you've had it for quite a few years, you may be able to accomplish your goals without making your monthly payments bigger.
Do you want to pull out some of your home equity to consolidate other debt? Good idea! If you have the equity in your home to make it work, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you may be able to save several hundred dollars monthly.
Building up Equity More Quickly
Are you planning to fatten your equity faster, and pay your mortgage loan off sooner? Then, you need to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. You will be paying less interest and growing your home equity faster, even though your mortgage payments will generally be bigger than you were paying. However, if you have had your existing thirty-year loan for a number of years and the loan balance is somewhat low, you may be do this without raising your monthly mortgage payment — it's even possible to save! To help you understand your options and the numerous benefits of refinancing, please contact us at (443) 619-7900. We would love to help you reach your goals!
Curious about refinancing? Call us at (443) 619-7900.