Which Refinancing Loan Program is Best for You?
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Even though it seems like it at times, there are not as many refinance options as there are applicants! Call us at 201-998-9050 and we will work with you to qualify you for the best refinance program to fit your financial needs. What are your reasons for refinancing? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a good option may be a low fixed-rate loan. Maybe you currently have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even when rates get higher later, unlike with your ARM, when you close a fixed rate mortgage, you set the low rate for the life of your loan. If you are planning to stay in your home for at least five more years, a loan with a fixed rate may be an especially good option for you. On the other hand, if you do see yourself selling your home before too long, an ARM with a small initial rate may be the ideal way to lower your monthly payment.
Refinancing to Cash Out
Are you wanting to cash out some of your equity with your refinance? Your home needs improvements; your daughter has been accepted to University and needs tuition; or you are planning a special vacation. So you need to get a loan above the remaining balance of your existing mortgage.Then you'll need You may not have an increase in your monthly payment, though, if you have had your existing mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with a high interest rate, that you want to consolidate? If you have the home equity for it, paying off other high interest debt (for example: credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars monthly.
Building up Equity More Quickly
Do you want to build up home equity quicker, and pay off your mortgage more quickly? In that case, you'll want to look into refinancing to a short term mortgage - like a fifteen-year loan. You will be paying less interest and growing your home equity more quickly, even though your mortgage payments will usually be higher than you were paying. However, if you have had your current 30 year loan for a number of years and the remaining balance is relatively low, you may be do this without raising your monthly mortgage payment — it's even possible to save! To help you determine your options and the many benefits in refinancing, please call us at 201-998-9050. We will help you reach your goals!
Curious about refinancing your home? Give us a call: 201-998-9050.