Choosing a Refinancing Program
The huge number of refinance options available can be overwhelming. Call us at (443) 619-7900 and we will match you with the loan program that best fits you. What do you hope to achieve with refinancing? Considering in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, the best option might be a low fixed-rate loan. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage, even if interest rates rise. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good choice. However, an ARM with a low intitial payment could be a smarter way to lower your payments if you see yourself moving in the next few years.
Are you hoping to cash out some of your equity with your refinance? It could be you want to update your kitchen, take care of your college kid's tuition, or go on a dream vacation. In this case, you will want to get a loan higher than the remaining balance of your present mortgage loan.In this case, you want to need to find a loan for a bigger number than the balance remaining on your present mortgage. If you've had your current mortgage for quite a while and/or have a loan whose interest rate is high, you might\could be able to do this without increasing your mortgage payment.
Do you want to cash out a portion of your equity to consolidate additional debt? Yes you can! If you have built up some equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) may help save you a chunk of cash each month.
Building up Equity Faster
Are you planning to fatten your home equity faster, and get your mortgage paid off more quickly? If this is your wish, your refinance mortgage can switch you to a mortgage loan program with a shorter term, for example: a 15 year loan. Your monthly payments will likely be higher than with a long-term mortgage loan, but the pay-off is: you will pay quite a bit less interest and will build up equity more quickly. Conversely, if your existing longer term mortgage has a small remaining balance, and was closed a while ago, you might be able to make the change without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please call us at (443) 619-7900. We are here for you.
Want to know more about refinancing? Give us a call at (443) 619-7900.