Choosing a Refinancing Loan
There are a huge number of refinancing programs available to borrowers. Contact us at (207) 571-8034 and we'll work with you to qualify you for the right refinance loan program to fit your financial situation. What are your reasons for refinancing? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan may be a wise choice for you. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. This is especially a wise choice if you don't think you'll be selling your home within the next five years or so. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower payments.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? It could be you want to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. So you will need to get a loan higher than the remaining balance on your existing mortgage.Then you'll want to need to qualify for a loan program for a bigger amount than the balance remaining on your present mortgage. However, if your loan interest rate is high now and you've had it for a long time, you may be able to accomplish your goals without making your monthly payments increase.
Maybe you hope to pull out some of the equity (cash out) to use toward other debt. If you have enough equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) could help save you a chunk of cash every month.
Paying it off Faster
Are you planning to fatten your equity faster, and pay your mortgage loan off more quickly? Then, you want to find out about refinancing to a short term mortgage - for example, a fifteen-year loan. The mortgage payments will likely be higher than with the long-term mortgage loan, but the pay-off is: that you will pay substantially less interest and can build up equity more quickly. However, if you've had your current thirty year mortgage loan for a long time and the remaining balance is somewhat low, you may be able to do this without increasing your monthly payment — it's even possible to save! To help you understand your options and the many benefits in refinancing, please call us at (207) 571-8034. We would love to help you reach your goals!
Curious about refinancing? Call us: (207) 571-8034.