Which Refinancing Program is Right for You?
There are not as many refinance loan programs as there are borrowers, but it seems like it at times! Contact us at 803-779-3638 and we will match you with the refinance program that fits you best. There are several things to keep in mind while you look at your options.
Lowering Your Payments
Are achieving reduced monthly payments and a better rate your main refinance goals? In that case, getting a low, fixed-rate loan could be a wise option for you. Perhaps you now have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — with which the interest rate varies. Even if interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you aren't planning on moving in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise option. 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 lower monthly payments.
Getting Out some Cash
Are you refinancing primarily to pull out some equity for an infusion of cash? Maybe you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you will need to qualify for a loan higher than the balance remaining on your current mortgage.In that case, you will want to qualify for a loan for a bigger amount than the balance remaining on your present mortgage loan. However, if your loan interest rate is high now and you've held it for quite a few years, you may be able to accomplish your goals without an increase in your mortgage payment.
Perhaps you want to pull out some home equity (cash out) to use toward other debt. If you have the home equity for it, taking care of other high interest debt (such as credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars each month.
Building up Equity Faster
Do you want to build up home equity quicker, and pay off your mortgage faster? Consider refinancing with a shorterterm loan, often a 15-year mortgage loan. You will be paying less interest and growing your equity more quickly, even though your mortgage payments will likely be bigger than they were. But, you may be able to make the change without much increase in your monthly mortgage payment if your longer term loan was closed a while back, and the remaining balance is somewhat low. You could even pay less! To help you figure out your options and the many benefits in refinancing, please contact us at 803-779-3638. We are here for you.
Want to know more about refinancing your home? Call us at 803-779-3638.