Choosing a Refinancing Loan
There are an enormous number of refinancing options available to borrowers. Contact us at 803-779-3638 and we can match you with the refinance loan program that best fits you. In the interest of looking at your options, you should consider what you want to achieve with the refinance.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right loan program for you. Maybe you are currently in a mortgage with a high, fixed interest rate, or a loan with which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage loan, even when interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a good loan option. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower monthly payments.
Is your refinance goal mainly to "cash out" some home equity? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you need to get a loan above the remaining balance of your present mortgage loan.With this goal, you want to need to qualify for a loan for a bigger number than the balance remaining on your current mortgage. If you've had your current mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Maybe you hope to cash out some equity in your home (cash out) to put toward other debt. If you have a fair amount of equity, paying off other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash every month.
Switching to a Shorter Term Loan
Are you hoping to fatten your equity faster, and pay off your mortgage more quickly? Then, you'll need to look into refinancing to a short term mortgage - such as a fifteen-year loan. The mortgage payments will probably be higher than they were with the longer term loan, but the pay-off is: you will pay quite a bit less interest and will build up equity more quickly. But, you may be able to make the change without a bigger monthly mortgage payment if your long term mortgage was closed a while back, and the balance remaining is small. You could even pay less! To help you determine your options and the many benefits of refinancing, please call us at 803-779-3638. We will help you reach your goals!
Want to know more about refinancing your home? Call us: 803-779-3638.