Which Refinancing Loan Program is Right for You?
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Even though it may seem like it sometimes, there are not as many refinance options as there are applicants! We can help you choose the refinance loan program that will fit your financial situation the best. Call us at (678) 539-8100 to begin the process. There are some general things to bear in mind as you consider your options.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the best choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even when interest rates rise. If you are not expecting to move in the near future (about five years), a fixed rate mortgage loan can particularly be a great option. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Is "cashing out" your primary purpose for refinancing? Your house needs new carpet; your son has been accepted to college and needs tuition money; or you are planning a special vacation. So you need to get a loan higher than the remaining balance on your present mortgage.Then you will You'll want to get a loan for more than the balance remaining on your existing mortgage in this case. You may not increase your monthly payment, however, if you have had your current mortgage loan for a while, and/or your loan interest rate is high.
Maybe you want to cash out a portion of the equity (cash out) to use toward other debt. If you have enough home equity, paying toward other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a lot of cash each month.
Building up Equity More Quickly
Do you hope to build up home equity quicker, and pay off your mortgage more quickly? You should consider refinancing with a shorterterm loan, often a 15-year mortgage. The mortgage payments will likely be more than they were with a long-term mortgage, but in exchange, you will pay considerably less interest and will build up equity more quickly. But, you could be able to make the change without much increase in your monthly payment if your long term mortgage was closed a while back, and the remaining balance is low enough. You could even pay less! To help you figure out your options and the multiple benefits in refinancing, please contact us at (678) 539-8100. We can help you reach your goals!
Want to know more about refinancing? Call us: (678) 539-8100.