Selecting a Refinancing Loan
Although it may seem like it sometimes, there are not as many loan programs as there are borrowers! Contact us at 803-779-3638 and we can match you with the refinance loan program that is best for your needs. What are your reasons for refinancing? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan could be a wise choice for you. Perhaps you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even when rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you set that low interest rate for the term of your loan. This kind of loan can be particularly a wise choice if you don't think you'll be moving within the next 5 years or so. However, an ARM with a initial low payment may be a wiser way to reduce your monthly payments if you expect to move in the near future.
Refinancing to Cash Out
Is "cashing out" your primary purpose for your refinance? It could be you need to make home improvements, pay your child's college tuition bill, or go on a special family vacation. With this in mind, you will want to find a loan above the remaining balance of your existing mortgage loan.So you'll want You might not have an increase in your monthly payemnt, however, if you've had your existing loan for a long time, and/or your interest rate is high.
Consolidating Your Debt
Maybe you'd like to pull out some of the equity (cash out) to use toward other debt. If you have a fair amount of equity, paying toward other debt with higher interest that your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of cash every month.
Building up Equity More Quickly
Are you hoping to fatten your equity faster, and pay off your mortgage loan more quickly? Consider refinancing to a shorterterm loan, such as a 15-year mortgage. Even though your monthly payments will usually be increased, you will save on interest; so your home equity will build up faster. But, you could be able to make the change without much increase in your monthly payment if your longer term loan was closed a while back, and the remaining balance is somewhat low. You may even pay less! To help you determine your options and the many benefits in refinancing, please contact us at 803-779-3638. We will help you reach your goals!
Want to know more about refinancing? Give us a call at 803-779-3638.