Refinancing: Which Option is for You?
When you are overwhelmed with so many options, it may seem like there are even more refinance programs than applicants! Call us at 803-779-3638 and we can match you with the refinance program that is best for your needs. What are your reasons for your refinance loan? Considering in mind the information below will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan might be a wise option for you. Perhaps you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a good choice. However, an ARM with a low intitial payment could be a wiser way to reduce your mortgage payments if you expect to move in the next few years.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? Perhaps you need to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. Then you need to get a loan for more than the balance remaining on your existing mortgage loan.In that case, you'll You will want to find a loan for a higher amount than the balance remaining with your current home loan in this case. If you've had your current mortgage loan for a number of years and/or have a mortgage whose interest rate is high, you might\could be able to do this without increasing your monthly payment.
Perhaps you'd like to pull out a portion of the equity in your home (cash out) to use toward other debt. If you hold some debt with steep interest (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 enough home equity.
Getting a Shorter Term Loan
Do you need to build up home equity more quickly, and have your mortgage paid off sooner? In that case, you'll want to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. Although your monthly payment amount will likely be more, you will be paying less interest; so your equity will rise up faster. However, if you have held your existing thirty-year loan for a long time and the remaining balance is relatively low, you could be do this without raising your monthly mortgage payment — it's even possible to save! To help you determine your options and the multiple benefits of refinancing, please contact us at 803-779-3638. We will help you reach your goals!
Curious about refinancing your home? Give us a call at 803-779-3638.