Selecting a Refinancing Program
When you are overwhelmed with so many options, it may seem like there are even more loan programs than applicants! Call us at (207) 571-8034 and we'll work with you to qualify you for the perfect refinance loan to fit your needs. What are your goals for refinancing? Considering in mind the following will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan could be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you set the low rate for the term of your mortgage. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good option. On the other hand, if you can see yourself moving before too long, an ARM mortgage with a low initial rate could be the ideal way to reduce your monthly payments.
Is "cashing out" your primary purpose for your refinance? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you want to apply for a loan for more than the balance remaining of your existing mortgage.In this case, you will want to need to qualify for a loan program for a bigger amount than the remaining balance on your present mortgage loan. If you've had your existing mortgage for quite a while and/or have a loan with high interest, you may be able to do this without making your monthly payment bigger.
Do you have other debt, perhaps with a high interest rate, that you'd like to consolidate? If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars monthly.
Building up Equity Faster
Are you hoping to fatten your equity faster, and pay off your mortgage more quickly? If this is your hope, the refinance loan can switch you to a mortgage program with a short, for example: a 15 year loan. You will be paying less interest and growing your home equity more quickly, although your payments will usually be more than you have been paying. But, you may be able to make the change without much increase in your monthly mortgage payment if your long term mortgage was closed a while back, and the balance remaining is somewhat low. You may even pay less! To help you understand your options and the numerous benefits in refinancing, please call us at (207) 571-8034. We are here for you.
Curious about refinancing? Give us a call at (207) 571-8034.