Refinancing A Home Loan

Selecting a Refinancing Option

There are a huge number of refinancing options available to borrowers. We can guide you to locate the refinance program that will fit your needs best. Here are some things to keep in mind. What do you hope to achieve with your refinance loan?

The information below will help you narrow your choices.

Making Your Payments Lower

Are achieving reduced payments and a lower rate your main reasons for refinancing? In that case, the best option may be a low fixed-rate loan. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a loan in which the interest rate varies - an adjustable-rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage will remain at the same, low-interest rate, unlike an ARM. If you are expecting to stay in your home for about five more years, a loan with a fixed rate may be a particularly good fit for you. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate to get lower payments.

Refinancing to Cash Out

Are you refinancing mainly to "cash out" some home equity? Your house needs renovating; your son has been accepted to college and needs tuition money, or you are planning a special vacation. Then you need to apply for a loan for more than the remaining balance of your existing mortgage loan. In that case, you will need If you've had your current mortgage loan for quite a while and/or have a mortgage loan with high interest, you may be able to do this without increasing your monthly payment.

Consolidating Debt

Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can possibly save hundreds of dollars in your budget each month.

Paying it off Faster

Are you dreaming of paying your loan off more quickly, while beefing up your home equity faster? Then, you want to look into refinancing to a short-term mortgage loan - for example, a fifteen-year mortgage program. Although your monthly payments will usually be increased, you can be paying less interest; so your home equity will rise up faster. But, you may be able to switch without much increase in your monthly mortgage payment if your longer-term loan was closed a while back, and the balance remaining is low. You may even pay less! To help you understand your options and the multiple benefits of refinancing, please connect with us, We are here for you.