Choosing a Refinancing Option
There are an enormous number of refinancing options available to borrowers. Call us at 978-422-2311 and we'll help you qualify for the best refinance program 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 getting reduced payments and an improved rate your main refinance goals? Then a good choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even as interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you aren't expecting to move in the near future (about 5 years), a fixed-rate mortgage can especially be a good loan option. On the other hand, if you can see yourself selling your home before too long, an ARM mortgage with a low initial rate might be the best way to reduce your monthly payment.
Refinancing to Cash Out
Is your refinance goal primarily to pull out some equity for an infusion of cash? Perhaps you want to make home improvements, take care of your college kid's tuition, or go on a dream vacation. With this in mind, you need to look for a loan higher than the remaining balance on your present mortgage loan.In this case, you will want to find a loan program for a higher amount than the balance remaining on your existing mortgage loan. However, if your loan interest rate is currently high and you have held it for quite a few years, you could be able to accomplish your goals without a rise in your mortgage payment.
Do you want to cash out some home equity to consolidate other debt? Yes you can! If you have the home equity to make it work, paying off other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars a month.
Switching to a Shorter Term Loan
Do you want to build up home equity more quickly, and pay off your mortgage sooner? Then, you'll want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. Even though your monthly payments will usually be increased, you will save on interest; so your equity will rise up faster. But, you could be able to switch without a higher monthly mortgage payment if your longer term loan was closed a while ago, and the remaining balance is somewhat low. You may even make it lower! To help you understand your options and the multiple benefits of refinancing, please call us at 978-422-2311. We would love to help you reach your goals!
Curious about refinancing your home? Call us: 978-422-2311.