Which Refinancing Program is Best for You?
Although it seems like it sometimes, there aren't as many loan programs as there are borrowers! Call us at 425-508-9988 and we can help you qualify for the perfect refinance loan to fit your financial situation. What are your goals for refinancing? Considering in mind the following will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan may be a wise option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the loan, even when interest rates rise. This kind of loan can be particularly a good idea if you don't think you will sell your home within the next five years or so. On the other hand, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate might be the ideal way to bring down your monthly payment.
Is "cashing out" your primary purpose for refinancing? Maybe you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you'll want to qualify for a loan higher than the remaining balance on your present mortgage loan.So you want to find a loan program for a higher number than the remaining balance on your existing mortgage loan. However, if your loan interest rate is high now and you've had it for a long time, you may be able to accomplish your goals without making your mortgage payments bigger.
Do you have other debt, maybe with higher interest, that you need to consolidate? If you have a fair amount of equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a chunk of cash each month.
Building up Equity Faster
Are you dreaming of paying your loan off more quickly, while beefing up your home equity more quickly? You should consider refinancing to a short-term loan, like a 15-year mortgage loan. The mortgage payments will likely be more than with your longer term mortgage, but in exchange, that you will pay quite a bit less interest and can build up equity quicker. But, you could be able to make the change without a higher monthly payment if your longer term mortgage was closed a while ago, and the remaining balance is small. You may even make it lower! To help you determine your options and the many benefits in refinancing, please contact us at 425-508-9988. We are here for you.
Curious about refinancing? 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.