Refinancing: Which Program is for You?

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Although it may seem like it sometimes, there are not as many loan options as there are applicants! We can guide you to choose the refinance program that will fit your financial situation the best. Call us at 978-422-2311 to get things started. What do you hope to achieve with refinancing? Keeping in mind the following will help you begin your decision process.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan may be a wise option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the mortgage loan, even if interest rates rise. This kind of loan can be particularly a good idea if you aren't planning a move within the next 5 years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced mortgage payments.

Cashing Out

Is "cashing out" your main reason for refinancing? Perhaps you're going on a much needed vacation; you have to pay college tuition for your child; or you are updating your kitchen. So you need to find a loan higher than the remaining balance on your current mortgage.In that case, you will need You might not have an increase in your mortgage payment, however, if you've had your current mortgage for a long time, and/or your interest rate is high.

Debt Consolidation

Do you want to pull out some home equity to consolidate other debt? Great idea! If you have enough equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a chunk of money every month.

Paying it off Sooner

Are you dreaming of paying your loan off sooner, while beefing up your equity quicker? If this is your plan, your refinance can move you to a mortgage program with a short, for example: a 15 year loan. Your payments will likely be more than with your long-term loan, but the pay-off is: that you will pay considerably less interest and will build up equity more quickly. But, you may be able to switch without a higher monthly payment if your long term mortgage was closed a while back, and the remaining balance is somewhat low. You could even pay less! To help you determine your options and the multiple benefits of refinancing, please call us at 978-422-2311. We are here for you.

Curious about refinancing? Call us at 978-422-2311.