Refinancing: Which Loan Program is for You?
There are a huge number of refinancing options available to borrowers. Call us at 410-451-2755 and we will match you with the refinance loan program that best fits you. surveying your choices, you can think about what you want to achieve with the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even when rates come up later, unlike with your ARM, when you get a fixed rate mortgage, you lock in that low interest rate for the term of your loan. A fixed-rate mortgage can be especially a wise idea if you aren't planning a move within the next five years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get lower mortgage payments.
Are you planning to cash out some of your home equity with your refinance? Maybe you want to make home improvements, take care of your college kid's tuition, or take your dream vacation. So you need to find a loan for more than the balance remaining of your existing mortgage loan.In that case, you want to qualify for a loan for a bigger number than the remaining balance on your existing mortgage loan. If you've had your current mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Maybe you hope to pull out some equity in your home (cash out) to use toward other debt. If you own some higher interest debts (such as credit cards or car loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have enough equity.
Paying it off Sooner
Are you dreaming of paying your loan off more quickly, while building up your equity faster? If this is your plan, the refinance can move you to a loan program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your home equity faster, even though your monthly payments will generally be more than you were paying. Conversely, if your current long-term loan has a low balance remaining, and was closed a while ago, you may be able to make the change without paying more each month. To help you understand your options and the many benefits of refinancing, please call us at 410-451-2755. We are here for you.
Curious about refinancing your home? Give us a call: 410-451-2755.