Refinancing: Which Program is for You?
There are not as many refinance loan options as there are applicants, but it seems like it sometimes! Contact us at 410-451-2755 and we can help you qualify for the best refinance program to fit your situation. There are some general questions to ask yourself while you consider your options.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a wise choice for you. Maybe you currently have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — with which the interest rate can vary. Even when rates get higher later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low rate for the life of your loan. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can particularly be a wise choice. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Getting Out some Cash
Are you refinancing primarily to pull out some home equity for an infusion of cash? It could be you want to update your kitchen, take care of your college kid's tuition, or take a cruise. Then you want to get a loan higher than the balance remaining of your present mortgage loan.Then you need You might not have an increase in your monthly payemnt, though, if you've had your current mortgage for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you hold other debt, perhaps with a high interest rate, that you need to consolidate? If you have built up some home equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a lot of cash every month.
Building up Equity More Quickly
Do you need to build up home equity more quickly, and pay off your mortgage sooner? Consider refinancing to a shorterterm loan, often a 15-year mortgage. Your monthly payments will probably be more than with a long-term loan, but in exchange, you will pay substantially less interest and will build up equity more quickly. Conversely, if your current long-term mortgage loan has a low remaining balance, and was closed a while ago, you may even be able to make the move 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 would love to help you reach your goals!
Curious about refinancing? Call us at 410-451-2755.