Which Refinancing Option is Best for You?
There are a huge number of refinancing programs available to borrowers. We can guide you to locate the refinance program that can fit your financial situation the best. Contact us at (207) 571-8034 to get things started. What do you hope to achieve with refinancing? Keeping in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the ideal loan program for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even when rates get higher later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in that low rate for the life of your mortgage. If you plan to stay in your home for at least five more years, a fixed rate loan may be a particulary good choice for you. On the other hand, if you do see yourself moving within the next few years, an ARM mortgage with a low initial rate may be the ideal way to lower your monthly payments.
Getting Out some Cash
Are you hoping to cash out some of your home equity in your refinance? Maybe you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. With this in mind, you need to find a loan above the remaining balance of your current mortgage loan.With this goal, you'll You will be looking for a loan for more than the balance remaining on your existing mortgage in that case. If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Consolidating Your Debt
Perhaps you'd like to cash out some of the equity in your home (cash out) to use toward other debt. If you have the home equity for it, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars monthly.
Building up Equity Faster
Are you planning to fatten up your equity faster, and pay your mortgage off more quickly? Then, you want to look into refinancing to a short term mortgage - like a fifteen-year mortgage program. Your payments will probably be higher than with a long-term mortgage, but the pay-off is: that you will pay quite a bit less interest and can build up equity quicker. On the other hand, if your current long-term loan has a small balance remaining, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you determine your options and the numerous benefits of refinancing, please contact us at (207) 571-8034. We are here for you.
Curious about refinancing? Call us at (207) 571-8034.