Refinancing: Which Loan Program is for You?
When you are overwhelmed with so many choices, it may seem like there are even more refinance loan programs than applicants! We can guide you to select the loan program that will fit your needs the best. Call us at (443) 619-7900 to begin the process. There are several questions to ask yourself as you consider the options.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the right loan program for you. Perhaps you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage loan, even if interest rates rise. If you are planning to stay in your home for about five more years, a fixed rate loan may be a particulary good fit for you. On the other hand, if you can see yourself moving before too long, an ARM with a low initial rate may be the ideal way to lower your monthly payment.
Getting Out some Cash
Are you planning to cash out some of your equity with your refinance? Your house needs updating; your son has been accepted to University and needs tuition; or you are planning a special vacation. Then you will want to qualify for a loan higher than the balance remaining of your present mortgage.Then you You'll want to qualify for a loan for a bigger amount than the current balance of your current home loan in this case. However, if your mortgage rate is currently high and you have held it for quite a few years, you could be able to accomplish your goals without making your monthly payments bigger.
Perhaps you'd like to pull out some of the equity in your home (cash out) to use toward other debt. If you have the equity in your home for it, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars monthly.
Paying it off Sooner
Are you planning to fatten your home equity faster, and get your mortgage paid off more quickly? In that case, you'll want to find out about refinancing to a short term mortgage - like a fifteen-year mortgage loan. You will be paying less interest and growing your home equity more quickly, although your payments will usually be higher than they were. But, you might be able to make the change without a higher monthly payment if your longer term mortgage loan was closed a while back, and the balance remaining is low enough. You could even make it lower! To help you understand your options and the many benefits of refinancing, please call us at (443) 619-7900. We are here for you.
Curious about refinancing? Give us a call at (443) 619-7900.