Which Refinancing Option is Right for You?
The huge number of refinance options available to borrowers is truly breathtaking. Call us at 425-508-9988 and we can match you with the refinance program that best fits you. What are your reasons for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then the best option might be a low fixed-rate loan. Maybe you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even when interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise loan option. However, if you do see yourself selling your home within the next few years, an ARM with a small initial rate may be the ideal way to reduce your monthly payments.
Getting Out some Cash
Is "cashing out" your main reason for refinancing? It could be you need to make home improvements, take care of your college kid's tuition, or take a cruise. So you want to apply for a loan above the balance remaining of your existing mortgage.So you want You may not have an increase in your mortgage payemnt, however, if you've had your current mortgage for a number of years, and/or your loan interest rate is high.
Do you hold other debt, maybe with a higher interest rate, that you need to consolidate? If you have the equity in your home to make it work, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you can possible save several hundred dollars in your monthly budget.
Switching to a Shorter Term Loan
Are you wanting to fatten your home equity faster, and get your mortgage paid off sooner? Then, you need to find out about refinancing to a short term mortgage - such as a fifteen-year loan. You will be paying less interest and increasing your equity faster, even though your payments will likely be more than they were. Conversely, if your current longer term mortgage loan has a small remaining balance, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you understand your options and the numerous benefits in refinancing, please contact us at 425-508-9988. We can help you reach your goals!
Curious about refinancing? Call us: 425-508-9988.
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