Which Refinancing Option is Right for You?
There are not as many loan programs as there are borrowers, but sometimes it feels like it! Call us at 410-451-2755 and we'll work with you to qualify you for the best loan program to fit your financial situation. There are several things to have in mind as you consider the options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then your best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even when rates come up later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low interest rate for the life of your mortgage. If you plan to live in your home for at least five more years, a fixed rate loan may be an especially good choice for you. However, if you can see yourself moving within the next few years, an ARM with a low initial rate may be the ideal way to bring down your monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary purpose for your refinance? Maybe you want to make home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. Then you want to find a loan higher than the remaining balance of your current mortgage.Then you will need However, if your mortgage rate is currently high and you have held it for a long time, you could be able to achieve your goals without making your monthly payments increase.
Maybe you hope to cash out a portion of the equity (cash out) to put toward other debt. If you have the home equity to make it work, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars in your budget each month.
Building up Equity More Quickly
Are you dreaming of paying off your loan faster, while building up your equity faster? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage. Although your monthly payment amount will usually be increased, you can save on interest; so your home equity will rise up faster. But, you may be able to switch without a higher monthly payment if your long term mortgage was closed a while back, and the remaining balance is small. You may even pay less! To help you figure out your options and the multiple benefits of refinancing, please contact us at 410-451-2755. We can help you reach your goals!
Curious about refinancing your home? Call us: 410-451-2755.