Selecting a Refinancing Loan
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than applicants! We can help you choose the refinance loan program that will fit your situation the best. Contact us at 425-508-9988 to get started. There are several things to bear in mind while you consider your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a good choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even if rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you set the low rate for the term of your loan. If you are expecting to live in your home for at least five more years, a fixed rate mortgage may be an especially good choice for you. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate to get lower payments.
Getting Out some Cash
Are you hoping to cash out some of your equity with your refinance? Perhaps you need to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. Then you'll want to look for a loan higher than the balance remaining on your present mortgage.With this goal, you want If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment bigger.
Consolidating Your Debt
Perhaps you'd like to pull out some of the home equity (cash out) to put toward other debt. If you have the home equity for it, taking care of other high interest debt (such as home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars per month.
Paying it off Faster
Are you dreaming of paying off your loan faster, while beefing up your home equity quicker? Then, you'll need to look into refinancing to a short term mortgage - like a fifteen-year mortgage program. The monthly payments will probably be higher than with your longer term mortgage, but in exchange, that you will pay quite a bit less interest and will build up equity quicker. Conversely, if your existing longer term mortgage loan has a low remaining balance, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you understand your options and the multiple benefits in refinancing, please contact us at 425-508-9988. We are here for you.
Curious about refinancing? Call us at 425-508-9988.
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