Choosing a Refinancing Loan
When you are overwhelmed with so many options, it may seem like there are even more loan programs than applicants! We can help you find the refinance loan program that can fit your needs the best. Call us at (443) 619-7900 to begin the process. In the interest of looking at your choices, you can think about your goals for your refinance.
Reducing Your Monthly Payments
Are achieving better payments and an improved rate your main refinance goals? If so, applying for a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even when interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about five years), a fixed rate mortgage loan can particularly be a wise loan option. However, if you can see yourself moving in the near future, an adjustable rate mortgage with a low initial rate could be the ideal way to reduce your monthly payment.
Refinancing to Cash Out
Is your refinance goal mainly to "cash out" some home equity? Perhaps you need to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. In this case, you'll want to get a loan for more than the balance remaining on your current mortgage.Then you will want You might not have an increase in your monthly payemnt, however, if you've had your existing loan for a while, and/or your loan interest rate is high.
Do you want to cash out a portion of your equity to consolidate other debt? Great plan! If you have built up some equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a lot of money every month.
Paying it off Faster
Do you want to build up home equity quicker, and pay off your mortgage faster? In that case, you need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. The payments will likely be higher than with the long-term mortgage, but in exchange, that you will pay considerably less interest and will build up equity quicker. However, if you've had your current 30 year mortgage loan for a number of years and the remaining balance is relatively low, you could be able to do this without raising your mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits of refinancing, please call us at (443) 619-7900. We will help you reach your goals!
Want to know more about refinancing? Give us a call at (443) 619-7900.