Which Refinancing Program is Right for You?
When you are overwhelmed with all the options, it may seem as if there are even more refinance programs than borrowers! Call us at 803-779-3638 and we will help you qualify for the right refinance loan for your needs. What are your goals for refinancing? Considering in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Perhaps you currently hold a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even when rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in that low rate for the term of your loan. If you are planning to live in your home for about five more years, a loan with a fixed rate may be an especially good fit for you. However, an ARM with a low intitial payment could be a smarter way to reduce your mortgage payments if you expect to move in the near future.
Is "cashing out" your main purpose for your refinance? Your house needs updating; your son has been accepted to college and needs tuition; or you are planning a special vacation. In this case, you'll need to apply for a loan above the remaining balance of your existing mortgage loan.So you'll want to qualify for a loan for a bigger amount than the balance remaining on your existing mortgage. If you've had your current mortgage loan for quite a while and/or have a mortgage with high interest, you may be able to do this without making your mortgage payment higher.
Consolidating Your Debt
Do you want to pull out a portion of your home equity to consolidate other debt? Yes you can! If you hold some higher interest debts (such as credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of equity.
Paying it off Faster
Do you need to build up equity more quickly, and pay off your mortgage sooner? In that case, you want to find out about refinancing to a short term mortgage - like a fifteen-year mortgage loan. Although your mortgage payment amount will probably be increased, you can be paying less interest; so your equity will build up faster. But, you might be able to switch without much increase in your monthly mortgage payment if your long term mortgage loan was closed a while ago, and the balance remaining is small. You could even pay less! To help you figure out your options and the many benefits in refinancing, please call us at 803-779-3638. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us at 803-779-3638.