Selecting a Refinancing Loan
Although it seems like it at times, there aren't as many refinance loan programs as there are applicants! Contact us at (207) 571-8034 and we can match you with the refinance loan program that best fits you. What are your goals for your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are getting reduced mortgage payments and an improved rate your main refinance goals? In that case, a low, fixed rate loan may be your best option. Perhaps you currently have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — with which the rate of interest can vary. Even if rates rise later, unlike with your ARM, when you get a fixed-rate mortgage, you set that low interest rate for the life of your loan. A fixed-rate mortgage is especially a wise choice if you don't expect to sell your home within the next five years or so. However, an ARM with a initial low payment could be a smarter way to lower your mortgage payments if you expect to move in the near future.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? Perhaps you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. Then you will need to qualify for a loan higher than the balance remaining on your current mortgage loan.Then you You will be looking for a loan for a higher amount than the balance remaining with your current home loan in this case. You might not have an increase in your mortgage payemnt, though, if you have had your existing mortgage loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Perhaps you want to pull out some of the home equity (cash out) to use toward other debt. If you have a fair amount of home equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) might be able to save you a lot of cash every month.
Paying it off Sooner
Are you planning to fatten up your home equity faster, and pay off your mortgage loan more quickly? Consider refinancing with a short-term loan, such as a 15-year mortgage loan. Even though your mortgage payment amount will probably be increased, you can save on interest; so your home equity will rise up faster. However, if you have had your existing 30 year mortgage for a long time and the remaining balance is rather low, you may be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you understand your options and the many benefits of refinancing, please call us at (207) 571-8034. We are here for you.
Curious about refinancing your home? Give us a call at (207) 571-8034.