Which Refinancing Program is Best for You?
When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than applicants! We can guide you to locate the refinance loan program that will fit your situation the best. Contact us at (207) 571-8034 to get started. surveying your choices, you need to determine your goals for your refinance.
Reducing Your Monthly Payments
Are getting better mortgage payments and an improved rate your main refinance goals? If so, your best choice may be a low fixed-rate loan. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is particularly a good idea if you don't think you'll be moving within the next five years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get lower monthly payments.
Refinancing to Cash Out
Is your refinance goal primarily to "cash out" some home equity? Your home needs renovating; your daughter has gone to University and needs tuition money; or you have a special family vacation planned. In this case, you will need to look for a loan higher than the remaining balance of your present mortgage loan.In that case, you will You'll be looking for a loan for more than the remaining balance of your existing mortgage in this case. You might not have an increase in your mortgage payemnt, though, if you have had your current mortgage loan for a number of years, and/or your loan interest rate is high.
Maybe you'd like to cash out some home equity (cash out) to put toward other debt. If you have the equity in your home to make it work, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars monthly.
Getting a Shorter Term Loan
Are you hoping to fatten up your equity faster, and get your mortgage paid off more quickly? If this is your goal, the refinance loan can change you to a loan program with a shorter term, for example: a 15 year loan. Even though your monthly payments will probably be more, you will be paying less interest; so your equity will rise up faster. Conversely, if your existing longer term mortgage has a small balance remaining, and was closed a while ago, you may be able to make the change without paying more each month. To help you understand your options and the many benefits of refinancing, please call us at (207) 571-8034. We are here for you.
Want to know more about refinancing? Call us at (207) 571-8034.