Selecting a Refinancing Loan

There aren't as many loan options as there are applicants, but at times it feels like it! We can guide you to choose the refinance program that can fit your financial situation the best. Call us at 978-422-2311 to get started. There are some general questions to ask yourself while you review the options.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan may be a wise choice for you. 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 remain at the same, low interest rate, unlike an ARM. This can be particularly a good choice if you don't think you will sell your home within the next 5 years or so. On the other hand, if you can see yourself moving within several years, an ARM with a small initial rate could be the best way to bring down your monthly payment.

Getting Out some Cash

Is your refinance goal primarily to "cash out" some home equity? Your house needs new carpet; your son has gone to college and needs tuition money; or you are taking your family on a cruise. So you'll need to find a loan above the balance remaining on your existing mortgage.So you will need You might not have an increase in your mortgage payemnt, though, if you've had your current mortgage for a long time, and/or your interest rate is high.

Debt Consolidation

Perhaps you hope to pull out some equity (cash out) to use toward other debt. If you hold some higher interest debts (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have enough equity.

Switching to a Shorter Term Loan

Are you dreaming of paying off your loan sooner, while building up your home equity quicker? Consider refinancing to a shorterterm loan, like a 15-year mortgage loan. The monthly payments will probably be higher than with a longer term loan, but the pay-off is: that you will pay considerably less interest and can build up equity quicker. However, if you've held your current thirty-year mortgage for a number of years and the loan balance is somewhat low, you could be able to do this without raising your monthly payment — it's even possible to save! To help you determine your options and the numerous benefits of refinancing, please contact us at 978-422-2311. We are here for you.

Curious about refinancing your home? Give us a call: 978-422-2311.