Which Refinancing Loan Program is Right for You?
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The huge number of refinance options available can be overwhelming. We can guide you to choose the refinance program that will fit your situation the best. Contact us at 918-335-7735 to get things started. What are your goals for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then the best choice may be a low fixed-rate loan. Perhaps you now have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Even as interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for at least five more years, a fixed rate loan may be a particulary good choice for you. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get lower payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? It could be you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you'll need to find a loan higher than the balance remaining of your present mortgage loan.So you will You will be looking for a loan for a higher amount than the balance remaining of your existing mortgage loan in that case. If you've had your existing mortgage for a long time and/or have a mortgage loan with a high interest rate, you may be able to do this without making your monthly payment bigger.
Do you hold other debt, perhaps with higher interest, that you need to consolidate? If you have enough equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of money each month.
Switching to a Shorter Term Loan
Are you wanting to fatten up your equity faster, and get your mortgage paid off more quickly? If this is your wish, the refinance mortgage can switch you to a loan program with a shorter term, like a 15 year loan. The monthly payments will probably be higher than with the longer term mortgage loan, but the pay-off is: that you will pay considerably less interest and can build up equity more quickly. But, you might be able to switch without a higher monthly mortgage payment if your longer term loan was closed a while back, and the balance remaining is low. You may even pay less! To help you determine your options and the numerous benefits of refinancing, please contact us, We would love to help you reach your goals!