Selecting a Refinancing Program
There are an enormous number of refinancing programs available to borrowers. Contact us at (207) 571-8034 and we can match you with the loan program that fits you best. What are your reasons for your refinance loan? Considering in mind the information below will help you narrow your choices.
Lowering Your Payments
Are achieving lower payments and a better rate your main reasons for refinancing? If so, your best option could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage loan, even when interest rates rise. If you are planning to live in your home for at least five more years, a loan with a fixed rate may be a particulary good fit for you. However, if you do see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate may be the ideal way to reduce your monthly payments.
Refinancing to Cash Out
Are you refinancing mainly to "cash out" some home equity? Maybe you want to update your kitchen, pay your child's college tuition bill, or go on a dream vacation. In this case, you need to get a loan higher than the balance remaining of your existing mortgage.So you'll want to need to find a loan program for a higher number than the remaining balance on your current mortgage loan. You might not increase your mortgage payemnt, though, if you have had your current mortgage loan for a number of years, and/or your interest rate is high.
Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you hold some higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough equity.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your home equity more quickly? If this is your wish, the refinance mortgage can change you to a loan program with a shorter term, such as a 15 year loan. The mortgage payments will probably be higher than with a long-term loan, but the pay-off is: you will pay considerably less interest and will build up equity quicker. However, if you've held your current thirty-year mortgage loan for a number of years and the remaining balance is somewhat low, you might be able to do this without increasing your monthly mortgage payment — you could even be able to save! To help you determine your options and the numerous benefits of refinancing, please call us at (207) 571-8034. We are here for you.
Curious about refinancing your home? Give us a call: (207) 571-8034.