Refinancing: Which Program is for You?

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There are a huge number of refinancing options available to borrowers. Call us at 866-300-1550 and we will work with you to qualify you for the right refinance program to fit your needs. surveying your choices, you will need to list your goals for your refinance.

Lowering Your Payments

Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right option for you. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the loan, even as interest rates rise. If you are not planning a move in the near future (about five years), a fixed rate mortgage loan can especially be a good option. However, if you do see yourself moving in the near future, an ARM mortgage with a low initial rate may be the ideal way to reduce your monthly payment. As a result of refinancing, your total finance charges may be higher over the life of the loan.

Cashing Out

Is "cashing out" your main reason for refinancing? Maybe you need to pay for home improvements, take care of your college kid's tuition, or take a cruise. With this in mind, you'll need to look for a loan for more than the balance remaining of your current mortgage loan.With this goal, you want However, if your loan interest rate is high now and you have held it for a long time, you could be able to accomplish your goals without making your mortgage payments higher.

Consolidating Your Debt

Do you want to pull out a portion of your equity to consolidate additional debt? Great idea! If you have a fair amount of home equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) could be able to save you a lot of cash each month.

Paying it off Sooner

Are you wanting to fatten your equity faster, and get your mortgage paid off sooner? In that case, you'll want to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage program. Even though your mortgage payment amount will likely be more, you can be paying less interest; so your home equity will rise up faster. However, if you have held your existing 30-year loan for a number of years and the loan balance is relatively low, you could be do this without raising your monthly payment — you may even be able to save! To help you understand your options and the multiple benefits in refinancing, please contact us at 866-300-1550. We can help you reach your goals!