Which Refinancing Program is Best for You?
When you are overwhelmed with so many options, it may seem like there are even more refinance programs than borrowers! Contact us at 803-779-3638 and we will work with you to qualify you for the best loan program to fit your situation. surveying your options, you'll need to determine what you want to achieve with your refinance.
Lowering Your Payments
Are getting reduced mortgage payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be your best option. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. This is particularly a good idea if you don't plan to move within the next 5 years or so. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate to get lower mortgage payments.
Refinancing to Cash Out
Are you hoping to cash out some of your equity with your refinance? Your house needs updating; your son has gone to college and needs tuition money; or you are taking your family on a cruise. In this case, you'll need to find a loan above the balance remaining of your present mortgage loan.Then you need If you've had your existing mortgage loan for quite a while and/or have a loan with high interest, you may be able to do this without making your monthly payment bigger.
Perhaps you hope to pull out a portion of the equity (cash out) to put toward other debt. If you hold any higher interest debts (such as credit cards or car loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the equity built up to make it work.
Switching to a Shorter Term Loan
Are you wanting to fatten up your home equity faster, and pay your mortgage loan off sooner? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage. Your monthly payments will likely be more than with the long-term mortgage loan, but in exchange, you will pay quite a bit less interest and can build up equity more quickly. However, if you've held your existing 30 year loan for a number of years and the remaining balance is somewhat low, you may be able to do this without raising your monthly payment — it's even possible to save! To help you understand your options and the numerous benefits in refinancing, please contact us at 803-779-3638. We are here for you.