Selecting a Refinancing Program

When you are overwhelmed with all the choices, it may seem like there are even more refinance programs than borrowers! Contact us at 410-451-2755 and we will match you with the refinance loan program that best fits you. There are some general things to have in mind while you review your choices.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you close a fixed rate mortgage, you lock in the low interest rate for the term of your loan. If you aren't expecting to move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise choice. However, an ARM with a low intitial payment may be a better way to reduce your monthly payments if you expect to move in the next few years.

Getting Out some Cash

Is "cashing out" your main purpose for your refinance? Your home needs improvements; your son has gone to University and needs tuition money; or you are taking your family on a cruise. Then you'll want to find a loan higher than the balance remaining of your existing mortgage loan.With this goal, you need However, if your loan interest rate is high now and you've had it for quite a few years, you could be able to accomplish your goals without a rise in your mortgage payment.

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 off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a chunk of cash every month.

Building up Equity More Quickly

Do you plan to build up equity more quickly, and have your mortgage paid off more quickly? Then, you need to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. Although your monthly payment amount will likely be increased, you will be paying less interest; so your equity will rise up faster. But, you might be able to make the change without a bigger monthly payment if your long term loan was closed a while back, and the remaining balance is small. You may even pay less! To help you determine your options and the many benefits of refinancing, please contact us at 410-451-2755. We would love to help you reach your goals!

Curious about refinancing your home? Give us a call at 410-451-2755.