Selecting a Refinancing Program
The huge number of refinance options available can be overwhelming. Call us at 803-779-3638 and we will work with you to qualify you for the perfect refinance loan program to fit your financial situation. In order to review your choices, you will need to consider what you want to achieve with the refinance.
Making Your Payments Lower
Are achieving better monthly payments and an improved rate your main reasons for refinancing? Then the best option may be a low fixed-rate loan. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your loan, even if interest rates rise. If you are planning to stay in your home for at least five more years, a fixed-rate loan may be a particulary good choice for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Are you refinancing mainly to "cash out" some home equity? It could be you need to update your kitchen, take care of your college kid's tuition, or take your dream vacation. Then you will need to find a loan above the balance remaining on your current mortgage.So you will want to qualify for a loan program for a higher amount than the remaining balance on your present mortgage. You might not have an increase in your mortgage payemnt, though, if you've had your existing loan for a while, and/or your loan interest rate is high.
Do you want to cash out some equity to consolidate other debt? Yes you can! If you have the equity in your home to make it work, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars per month.
Building up Equity Faster
Are you dreaming of paying your loan off sooner, while building up your equity faster? Consider refinancing with a shorterterm loan, often a 15-year mortgage. Your mortgage payments will likely be higher than with your long-term mortgage loan, but in exchange, that you will pay considerably less interest and can build up equity quicker. On the other hand, if your existing longer term mortgage has a small remaining balance, and was closed a while ago, you could be able to make the switch without paying more each month. To help you understand your options and the multiple benefits in refinancing, please call us at 803-779-3638. We will help you reach your goals!