Which Refinancing Loan Program is Best for You?
Although it may seem like it sometimes, there aren't as many refinance options as there are applicants! Contact us at (207) 571-8034 and we will match you with the loan program that fits you best. surveying your options, you can determine your goals for the refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan may be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even when interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. If you aren't expecting to move in the near future (about 5 years), a fixed-rate mortgage can particularly be a good loan option. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate to get lower payments.
Refinancing to Cash Out
Are you planning to cash out some of your home equity with your refinance? Your house needs new carpet; your daughter has gone to University and needs tuition money; or you are planning a special vacation. So you'll want to qualify for a loan above the remaining balance of your current mortgage.So you will You'll need to qualify for a loan for a bigger amount than the remaining balance on your existing mortgage in that case. You might not have an increase in your mortgage payemnt, though, 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 high interest, that you want to consolidate? If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars monthly.
Paying it off Faster
Do you hope to build up home equity more quickly, and pay off your mortgage more quickly? Consider refinancing to a shorterterm loan, often a 15-year mortgage loan. Even though your monthly payments will likely be increased, you can save on interest; so your home equity will rise up faster. Conversely, if your current longer term loan has a low balance remaining, and was closed a while ago, you could be able to make the move without paying more each month. To help you determine your options and the many benefits in refinancing, please contact us at (207) 571-8034. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us at (207) 571-8034.