Which Refinancing Option is Right for You?
Although it may seem like it sometimes, there are not as many loan options as there are applicants! Call us at 425-508-9988 and we will help you qualify for the right refinance loan for your needs. In order to review your options, you can think about what you want to achieve with the refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan might be a wise option for you. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — in which the interest rate varies. Even if interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. This kind of loan can be especially a good choice if you don't think you will sell your home within the next 5 years or so. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for your refinance? Your house needs new carpet; your daughter has been accepted to University and needs tuition; or you have a special family vacation planned. So you will need to get a loan higher than the balance remaining of your existing mortgage loan.So you want to qualify for a loan program for a higher amount than the remaining balance on your current mortgage loan. You might not increase your monthly payemnt, though, if you have had your current mortgage 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 (cash out) to use toward other debt. If you have enough equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a chunk of cash every month.
Paying it off Sooner
Are you wanting to fatten your equity faster, and get your mortgage paid off sooner? If this is your wish, the refinance mortgage can move you to a mortgage program with a shorter term, for example: a 15 year loan. Even though your monthly payment amount will usually be more, you can be paying less interest; so your equity will rise up faster. However, if you've had your current thirty-year mortgage for a number of years and the loan balance is somewhat low, you could be able to do this without increasing your monthly mortgage payment — you might even be able to save! To help you understand your options and the numerous benefits of refinancing, please call us at 425-508-9988. We are here for you.
Want to know more about refinancing your home? Call us at 425-508-9988.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.