Selecting a Refinancing Program
When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than borrowers! We can guide you to locate the refinance loan program that can fit your needs the best. Contact us at 803-779-3638 to get things started. surveying your options, you should consider your goals for the refinance.
Making Your Payments Lower
Are achieving reduced monthly payments and a lower rate your main reasons for refinancing? In that case, getting a low, fixed-rate loan could be a wise choice for you. Maybe you are currently in a mortgage with a high, fixed interest rate, or a mortgage in which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you get a fixed rate mortgage, you set the low interest rate for the life of your mortgage. A fixed-rate mortgage can be particularly a good option if you aren't expecting a move within the next 5 years or so. However, an ARM with a low intitial payment could be a better way to reduce your mortgage payments if you expect to move in the next few years.
Are you refinancing primarily to pull out some of your equity for an infusion of cash? Perhaps you're dreaming of a cruise; you have to pay college tuition for your child; or you are updating your kitchen. Then you will need to find a loan for more than the remaining balance of your existing mortgage.With this goal, you want to need to qualify for a loan program for a bigger amount than the balance remaining on your current mortgage loan. However, if your mortgage rate is currently high and you have held it for quite a few years, you could be able to reach your goals without making your monthly payments rise.
Consolidating Your Debt
Maybe you hope to pull out some of the home equity (cash out) to use toward other debt. If you have a fair amount of home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a lot of cash every month.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while beefing up your home equity faster? If this is your hope, the refinance mortgage can switch you to a loan program with a shorter term, like a 15 year loan. Even though your monthly payments will likely be increased, you can be paying less interest; so your equity amount will rise up faster. But, you might be able to switch without much increase in your monthly payment if your long term mortgage loan was closed a while ago, and the remaining balance is small. You may even make it lower! To help you determine your options and the multiple benefits in refinancing, please call us at 803-779-3638. We are here for you.
Curious about refinancing your home? Call us at 803-779-3638.