Refinancing: Which Option is for You?
The huge number of refinance options available can be overwhelming. Contact us at (443) 619-7900 and we will match you with the loan program that is ideal for your needs. What are your reasons for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving better mortgage payments and an improved rate your main refinance goals? If so, getting a low, fixed-rate loan may be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even as interest rates rise, a fixed-rate mortgage will stay 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 can especially be a great loan option. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate to get lower mortgage payments.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? Maybe you're going on a much needed vacation; you need to pay college tuition for your child; or you plan to renovate your home. In this case, you want to apply for a loan above the remaining balance of your present mortgage loan.So you will need If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Do you want to pull out some of your equity to consolidate other debt? Yes you can! If you have the equity in your home to make it work, paying off other high interest debt (for example: home equity loans, student loans, or credit cards) means you can possible save several hundred dollars a month.
Building up Equity Faster
Do you plan to build up equity quicker, and pay off your mortgage faster? Consider refinancing with a shorterterm loan, such as a 15-year mortgage. The mortgage payments will probably be higher than with the long-term mortgage, but in exchange, that you will pay quite a bit less interest and can build up equity quicker. However, if you've held your existing thirty year mortgage loan for a number of years and the remaining balance is relatively low, you may be do this without increasing your monthly payment — it's even possible to save! To help you figure out your options and the numerous benefits of refinancing, please contact us at (443) 619-7900. We can help you reach your goals!
Curious about refinancing your home? Give us a call: (443) 619-7900.