Which Refinancing Loan Program is Best for You?
There are not as many refinance loan programs as there are borrowers, but at times it feels like it! Contact us at (207) 571-8034 and we'll help you qualify for the best refinance program to fit your financial needs. What are your reasons for your refinance loan? Considering in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
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 option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even when interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are planning to stay in your home for about five more years, a loan with a fixed rate may be a particulary good choice for you. However, if you do see yourself moving within several years, an ARM mortgage with a low initial rate may be the ideal way to lower your monthly payments.
Getting Out some Cash
Are you wanting to cash out some of your home equity in your refinance? Maybe you want to pay for home improvements, take care of your college kid's tuition, or take your dream vacation. With this in mind, you will need to find a loan higher than the balance remaining on your existing mortgage.So you will You'll be looking for a loan for more than the balance remaining with your current mortgage in this case. You might not have an increase in your monthly payemnt, though, if you've had your existing mortgage loan for a long time, and/or your loan interest rate is high.
Do you want to pull out some of your equity to consolidate other debt? Yes you can! If you hold some debt with higher interest (like credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of equity.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while building up your equity faster? If this is your goal, the refinance mortgage can change you to a mortgage loan program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your home equity more quickly, although your monthly payments will usually be higher than you have been paying. However, if you have held your existing 30-year mortgage for a number of years and the remaining balance is relatively low, you might be do this without increasing your mortgage payment — you may even be able to save! To help you understand your options and the many benefits of refinancing, please contact us at (207) 571-8034. We are here to help you reach your goals!
Want to know more about refinancing? Call us at (207) 571-8034.