Which Refinancing Loan Program is Best for You?
There are a huge number of refinancing options available to borrowers. Contact us at (443) 619-7900 and we'll work with you to qualify you for the perfect loan program to fit your financial situation. There are some general questions to ask yourself as you look at the options.
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 your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the loan, even as interest rates rise. If you are planning to stay in your home for at least five more years, a fixed rate loan may be an especially good fit for you. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced mortgage payments.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? Perhaps you want to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. With this in mind, you need to look for a loan higher than the balance remaining on your present mortgage.With this goal, you will need If you've had your current mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment bigger.
Maybe you want to pull out a portion of the equity (cash out) to use toward other debt. If you have built up some home equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of money each month.
Paying it off Sooner
Are you hoping to fatten your equity faster, and get your mortgage paid off sooner? If this is your plan, your refinance can move you to a mortgage program with a shorter term, for example: a 15 year loan. Although your mortgage payment amount will usually be more, you can save on interest; so your equity amount will build up faster. However, if you've held your current 30-year mortgage for a number of years and the loan balance is relatively low, you might be do this without raising your monthly mortgage payment — you might even be able to save! To help you understand your options and the numerous benefits in refinancing, please contact us at (443) 619-7900. We are here for you.
Want to know more about refinancing your home? Give us a call: (443) 619-7900.