Choosing a Refinancing Loan
There aren't as many loan program choices as there are applicants, but sometimes it feels like it! Contact us at (207) 571-8034 and we will match you with the refinance program that is ideal for you. surveying your options, you should consider what you want to achieve with your refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, the best choice might be a low fixed-rate loan. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage loan, even when interest rates rise. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can particularly be a wise choice. However, an ARM with a low intitial payment could be a wiser way to lower your monthly payments if you expect to move in the next few years.
Is your refinance goal mainly to "cash out" some home equity? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you plan to renovate your home. So you want to get a loan for more than the balance remaining on your present mortgage loan.In that case, you will want If you've had your existing mortgage for a number of years and/or have a mortgage whose interest rate is high, you might\could be able to do this without increasing your monthly payment.
Do you hold other debt, perhaps with a high interest rate, that you'd like to consolidate? If you own any higher interest debts (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough home equity.
Paying it off Faster
Do you need to build up home equity more quickly, and have your mortgage paid off sooner? If this is your hope, the refinance loan can switch you to a mortgage loan program with a short, like a 15 year loan. Although your monthly payment amount will probably be increased, you will save on interest; so your home equity will rise up faster. On the other hand, if your existing long-term mortgage loan has a low remaining balance, and was closed a number of years ago, you may be able to make the move without paying more each month. To help you determine your options and the many benefits in refinancing, please call us at (207) 571-8034. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call: (207) 571-8034.