Refinancing: Which Option is for You?
Even though it seems like it sometimes, there aren't as many refinance loan options as there are applicants! Call us at 425-508-9988 and we will work with you to qualify you for the perfect refinance loan program to fit your situation. What are your reasons for your refinance loan? Keeping in mind the following will help you narrow your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan could be a wise choice for you. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are expecting to live in your home for at least five more years, a fixed-rate loan may be a particulary good choice for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.
Is your refinance goal primarily to pull out some home equity for an infusion of cash? Perhaps you want to pay for home improvements, pay your child's college tuition bill, or go on a special family vacation. So you need to find a loan for more than the remaining balance on your existing mortgage.So you'll want to need to find a loan for a bigger amount than the balance remaining on your existing mortgage. You might not increase your monthly payemnt, however, if you have had your current mortgage loan for a number of years, and/or your loan interest rate is high.
Do you have other debt, maybe with a high interest rate, that you'd like to consolidate? If you hold any debt with higher interest (such as credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have enough home equity.
Paying it off Faster
Are you planning to fatten up your equity faster, and pay your mortgage off more quickly? Then, you'll need to find out about refinancing to a short term mortgage - for example, a fifteen-year loan. Although your monthly payments will usually be more, you will be paying less interest; so your equity amount will build up faster. However, if you've had your existing thirty-year mortgage loan 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 — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please contact us at 425-508-9988. We are here to help you reach your goals!
Curious about refinancing? Give us a call: 425-508-9988.