Which Refinancing Option is Right for You?
There are a huge number of refinancing options available to borrowers. We can help you select the loan program that will fit your financial situation the best. Contact us at 803-779-3638 to get started. What do you hope to achieve with your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving lower monthly payments and a better rate your main refinance goals? In that case, your best choice may be a low fixed-rate loan. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in that low rate for the life of your loan. If you are expecting to live in your home for at least five more years, a fixed rate loan may be a particulary good fit for you. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate to get lower mortgage payments.
Getting Out some Cash
Are you hoping to cash out some of your equity with your refinance? It could be you want to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. In this case, you want to find a loan above the remaining balance on your current mortgage.With this goal, you'll want to qualify for a loan for a higher amount than the remaining balance on your present mortgage loan. If you've had your current mortgage loan for a number of years and/or have a mortgage whose interest rate is high, you may be able to do this without increasing your mortgage payment.
Do you hold other debt, maybe with higher interest, that you want to consolidate? If you have enough equity, paying off other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) could help save you a chunk of money every month.
Switching to a Shorter Term Loan
Are you hoping to fatten up your equity faster, and get your mortgage paid off sooner? If this is your hope, your refinance can move you to a mortgage program with a shorter term, like a 15 year loan. You will be paying less interest and growing your equity faster, although your mortgage payments will usually be higher than they were. But, you may be able to switch without a higher monthly payment if your long term loan was closed a while back, and the remaining balance is small. You could even pay less! To help you determine your options and the many benefits in refinancing, please call us at 803-779-3638. We are here for you.
Want to know more about refinancing? Give us a call: 803-779-3638.