Which Refinancing Loan Program is Best for You?
There are not as many loan programs as there are applicants, but sometimes it feels like it! Contact us at 425-508-9988 and we can help you qualify for the right refinance loan to fit your financial situation. What do you hope to achieve with refinancing? Considering in mind the following will help you narrow your choices.
Lowering Your Payments
Are getting better payments and an improved rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan may be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even when rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set the low interest rate for the term of your loan. If you plan to stay in your home for at least five more years, a fixed rate loan may be an especially good fit for you. However, an ARM with a low intitial payment could be a better way to reduce your mortgage payments if you expect to move within the near future.
Refinancing to Cash Out
Is your refinance goal primarily to pull out some of your equity for an infusion of cash? Maybe you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you'll need to find a loan higher than the remaining balance on your current mortgage.With this goal, you need You may not have an increase in your mortgage payemnt, however, if you've had your existing loan for a number of years, and/or your loan interest rate is high.
Perhaps you want to cash out a portion of the equity (cash out) to put toward other debt. If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save several hundred dollars in your budget each month.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while building up your equity more quickly? In that case, you need to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. The payments will probably be more than they were with the longer term mortgage, but the pay-off is: that you will pay substantially less interest and can build up equity more quickly. On the other hand, if your current longer term mortgage has a small remaining balance, and was closed a while ago, you could be able to make the change without paying more each month. To help you determine your options and the many benefits in refinancing, please contact us at 425-508-9988. We are here for you.
Curious about refinancing your home? Call us: 425-508-9988.
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