Choosing a Refinancing Option
Even though it may seem like it at times, there aren't as many refinance loan programs as there are borrowers! Contact us at 410-451-2755 and we will match you with the refinance program that best fits you. surveying your choices, you can consider your goals for your refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the right loan program for you. Maybe you currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage, even when interest rates rise. A fixed-rate mortgage is especially a wise option if you don't think you'll be moving within the next five years or so. However, if you do see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate could be the best way to bring down your monthly payment.
Getting Out some Cash
Are you refinancing mainly to pull out some of your equity for an infusion of cash? Your house needs new carpet; your son has gone to University and needs tuition; or you are taking your family on a cruise. So you need to look for a loan for more than the balance remaining on your existing mortgage loan.In that case, you want However, if your mortgage rate is currently high and you've held it for quite a few years, you may be able to achieve your goals without making your monthly payments bigger.
Do you hold other debt, maybe with higher interest, that you need to consolidate? If you have a fair amount of equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a lot of cash each month.
Building up Equity Faster
Are you wanting to fatten your home equity faster, and pay your mortgage loan off sooner? Then, you want to look into refinancing to a short term mortgage - for example, a fifteen-year loan. Your payments will probably be more than they were with your long-term mortgage loan, but the pay-off is: you will pay quite a bit less interest and can build up equity more quickly. But, you could be able to make the change without a bigger monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the balance remaining is small. You may even pay less! 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? Call us at 410-451-2755.