Choosing a Refinancing Option
There are an enormous number of refinancing programs available to borrowers. We can guide you to find the refinance loan program that can fit your financial situation the best. Contact us at 425-508-9988 to begin the process. There are some general things to keep in mind while you review your options.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan might be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even if interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a great choice. On the other hand, if you do see yourself moving within several years, an ARM with a small initial rate could be the ideal way to reduce your monthly payments.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? Your home needs improvements; your son has gone to University and needs tuition; or you are planning a special vacation. In this case, you will want to apply for a loan above the balance remaining on your current mortgage.Then you will want You may not have an increase in your mortgage payemnt, however, if you've had your existing mortgage for a while, and/or your loan interest rate is high.
Do you hold other debt, maybe with a high interest rate, that you need to consolidate? If you have built up some home equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a lot of cash every month.
Building up Equity Faster
Are you dreaming of paying your loan off sooner, while beefing up your equity quicker? You should consider refinancing with a shorterterm loan, often a 15-year mortgage. You will be paying less interest and growing your equity more quickly, although your monthly payments will usually be bigger than you have been paying. But, you could be able to switch without a bigger monthly mortgage payment if your long term mortgage loan was closed a while back, and the balance remaining is low enough. You could even pay less! To help you understand your options and the many benefits of refinancing, please call us at 425-508-9988. We are here for you.
Curious about refinancing your home? Call us: 425-508-9988.
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