Which Refinancing Option is Best for You?
There aren't as many refinance loan programs as there are applicants, but it feels like it sometimes! Contact us at (207) 571-8034 and we can match you with the refinance program that is ideal for your needs. What are your goals for your refinance loan? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a good choice may be a low fixed-rate loan. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the interest rate varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you are expecting to stay in your home for about five more years, a fixed-rate loan may be a particulary good fit for you. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary purpose for your refinance? Perhaps you need to pay for home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. In this case, you will need to get a loan for more than the balance remaining on your present mortgage.So you'll need If you've had your current mortgage for a long time and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.
Do you want to cash out some of your home equity to consolidate other debt? Great plan! If you hold some higher interest debts (like credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have enough home equity.
Paying it off Faster
Are you dreaming of paying your loan off sooner, while building up your home equity faster? In that case, you need to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. Your monthly payments will probably be higher than with your long-term mortgage loan, but the pay-off is: that you will pay considerably less interest and can build up equity more quickly. But, you could be able to switch without much increase in your monthly mortgage payment if your long term mortgage loan was closed a while ago, and the remaining balance is somewhat low. You may even make it lower! To help you determine your options and the numerous benefits in refinancing, please call us at (207) 571-8034. We are here to help you reach your goals!
Want to know more about refinancing your home? Give us a call: (207) 571-8034.