Choosing a Refinancing Option
There are a huge number of refinancing options available to borrowers. Contact us at (443) 619-7900 and we'll help you qualify for the right refinance loan to fit your needs. There are some general questions to ask yourself as you review your options.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right choice for you. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — with which the interest rate can vary. Even if interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. This can be particularly a wise option if you don't expect to move within the next five years or so. On the other hand, if you can see yourself moving in the near future, an ARM with a low initial rate may be the best way to reduce your monthly payments.
Are you refinancing mainly to "cash out" some home equity? Your home needs renovating; your daughter has been accepted to college and needs tuition; or you have a special family vacation planned. Then you will need to look for a loan above the balance remaining of your present mortgage loan.In that case, you will want to find a loan program for a higher number than the balance remaining on your present mortgage loan. However, if your mortgage rate is high now and you have held it for a long time, you could be able to reach your goals without making your monthly payments rise.
Do you have other debt, maybe with higher interest, that you want to consolidate? If you hold any debt with high interest (like credit cards or car loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have the equity built up to make it work.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off faster, while building up your equity more quickly? You should consider refinancing with a short-term loan, like a 15-year mortgage. The mortgage payments will probably be higher than they were with the long-term mortgage loan, but in exchange, you will pay substantially less interest and will build up equity quicker. But, you might be able to switch without a bigger monthly mortgage payment if your long term mortgage loan was closed a while ago, and the remaining balance is somewhat low. You may even make it lower! To help you understand your options and the many benefits in refinancing, please call us at (443) 619-7900. We are here for you.
Curious about refinancing your home? Call us: (443) 619-7900.