Selecting a Refinancing Option
The number of refinance options available is truly breathtaking. Call us at 410-451-2755 and we can match you with the loan program that fits you best. In the interest of looking at your options, you will need to think about your goals for your refinance.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even if rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set that low interest rate for the term of your mortgage. If you are not planning on moving in the near future (about five years), a fixed rate mortgage loan can especially be a good choice. However, an ARM with a initial low payment may be a better way to lower your mortgage payments if you expect to move in the next few years.
Refinancing to Cash Out
Are you refinancing mainly to pull out some of your equity for an infusion of cash? Perhaps you want to update your kitchen, take care of your college kid's tuition, or take a cruise. With this in mind, you'll need to get a loan for more than the remaining balance on your existing mortgage.In this case, you'll want to qualify for a loan program for a higher amount than the remaining balance on your current mortgage loan. However, if your loan interest rate is high now and you've had it for quite a few years, you could be able to reach your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you want to pull out a portion of your equity to consolidate additional debt? Good plan! If you have the equity in your home to make it work, paying off 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 hundreds of dollars a month.
Getting a Shorter Term Loan
Are you planning to fatten up your equity faster, and pay your mortgage off more quickly? You should consider refinancing to a short-term loan, such as a 15-year mortgage. The payments will probably be more than they were with your long-term mortgage loan, but in exchange, you will pay quite a bit less interest and can build up equity more quickly. Conversely, if your current longer term mortgage has a small balance remaining, and was closed a while ago, you might be able to make the switch without paying more each month. To help you determine your options and the multiple benefits in refinancing, please contact us at 410-451-2755. We are here for you.
Want to know more about refinancing your home? Give us a call: 410-451-2755.