Which Refinancing Loan Program is Right for You?
There are an enormous number of refinancing options available to borrowers. We can help you locate the refinance loan program that can fit your situation the best. Contact us at 803-779-3638 to get things started. What are your reasons for your refinance loan? 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? Then a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your mortgage loan, even when interest rates rise. A fixed-rate mortgage is particularly a wise choice if you aren't expecting a move within the next 5 years or so. 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 reduced mortgage payments.
Refinancing to Cash Out
Are you refinancing primarily to "cash out" some home equity? Maybe you need to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. With this in mind, you will need to find a loan higher than the remaining balance on your present mortgage.Then you'll want to need to qualify for a loan program for a higher number than the balance remaining on your present mortgage. If you've had your current mortgage for quite a while and/or have a loan with a high interest rate, you may be able to do this without making your mortgage payment bigger.
Maybe you'd like to cash out a portion of the equity (cash out) to use toward other debt. If you hold any debt with high interest (such as credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough equity.
Switching to a Shorter Term Loan
Are you wanting to fatten your equity faster, and pay your mortgage loan off sooner? Consider refinancing to a shorterterm loan, such as a 15-year mortgage. Even though your mortgage payments will usually be more, you can save on interest; so your home equity will build up faster. But, you could be able to make the change without a bigger monthly mortgage payment if your long term mortgage was closed a while ago, and the balance remaining is low enough. You may even pay less! To help you determine your options and the numerous benefits in refinancing, please call us at 803-779-3638. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us: 803-779-3638.