Selecting a Refinancing Program
When you are overwhelmed with all the options, it may seem like there are even more refinance programs than applicants! Call us at (207) 571-8034 and we will work with you to qualify you for the perfect refinance loan program to fit your needs. In the interest of looking at your options, you need to list what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then 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 loan programs that you might want to refinance. Even if interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you aren't planning on moving in the near future (about 5 years), a fixed rate mortgage loan can especially be a good loan option. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Is your refinance goal primarily to pull out some equity for an infusion of cash? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. Then you'll want to get a loan for more than the remaining balance of your existing mortgage.Then you will You will be looking for a loan for more than the balance remaining of your current home loan in this case. You might not have an increase in your mortgage payemnt, however, if you've 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 have enough equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a lot of money every month.
Paying it off Faster
Do you need to build up home equity more quickly, and have your mortgage paid off more quickly? In that case, you want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. Even though your monthly payments will likely be more, you can save on interest; so your equity amount will build up faster. However, if you've had your current 30-year loan for a long time and the loan balance is somewhat low, you might be able to do this without increasing your mortgage payment — you might even be able to save! To help you figure out your options and the numerous benefits of refinancing, please call us at (207) 571-8034. We will help you reach your goals!
Curious about refinancing your home? Give us a call at (207) 571-8034.