Refinancing: Which Program is for You?
The huge number of refinance options available to borrowers is truly breathtaking. Call us at 810-444-0024 and we will help you qualify for the right loan program to fit your situation. What are your reasons for refinancing? Keeping in mind the following will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, the best option could be a low fixed-rate loan. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage loan, even when interest rates rise. If you are planning to stay in your home for at least five more years, a fixed rate mortgage may be a particulary good option for you. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate to get reduced monthly payments.
Are you wanting to cash out some of your equity with your refinance? It could be you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you will want to qualify for a loan for more than the remaining balance of your current mortgage.With this goal, you will need If you've had your current mortgage for a long time and/or have a loan whose interest rate is high, you might\could be able to do this without increasing your mortgage payment.
Do you hold other debt, maybe with a higher interest rate, that you'd like to consolidate? If you own any debt with higher interest (like credit cards or car loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you hoping to fatten your home equity faster, and get your mortgage paid off more quickly? In that case, you'll want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. You will be paying less interest and increasing your equity more quickly, although your monthly payments will usually be more than they were. But, you may be able to switch without much increase in your monthly payment if your longer term mortgage loan was closed a while back, and the remaining balance is low enough. You could even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at 810-444-0024. We are here for you.
Curious about refinancing your home? Give us a call: 810-444-0024.