Which Refinancing Program is Best for You?
When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than borrowers! We can guide you to choose the loan program that will fit your financial situation the best. Contact us at 425-508-9988 to get started. surveying your choices, you can consider your goals for your refinance.
Reducing Your Monthly Payments
Are achieving reduced mortgage payments and a lower rate your main refinance goals? In that case, getting a low, fixed-rate loan might be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you are planning to live in your home for at least five more years, a loan with a fixed rate may be a particulary good choice for you. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower monthly payments.
Is your refinance goal mainly to "cash out" some home equity? Maybe you want to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. With this in mind, you'll want to get a loan higher than the remaining balance on your existing mortgage.With this goal, you'll You will need to get a loan for a higher amount than the current balance on your current mortgage loan in this case. You might not have an increase in your monthly payemnt, however, if you've had your current mortgage loan for a number of years, and/or your loan interest rate is high.
Maybe you'd like to cash out a portion of the equity in your home (cash out) to use toward other debt. If you hold any debt with steep interest (such as credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Switching to a Shorter Term Loan
Are you hoping to fatten up your equity faster, and pay your mortgage loan off more quickly? If this is your wish, your refinance loan can switch you to a mortgage program with a shorter term, for example: a 15 year loan. You will be paying less interest and growing your home equity faster, even though your monthly payments will generally be bigger than you have been paying. But, you could be able to switch without a higher monthly payment if your longer term mortgage loan was closed a while ago, and the remaining balance is low. You could even pay less! To help you determine your options and the multiple benefits in refinancing, please call us at 425-508-9988. We are here for you.
Want to know more about refinancing? Call us: 425-508-9988.