Which Refinancing Loan Program is Best for You?
Call us at 478-474-4600 and we will match you with the loan program that fits you best. What do you hope to achieve with refinancing? Keeping in mind the following will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your mortgage loan, even as interest rates rise. If you plan to live in your home for at least five more years, a fixed rate mortgage may be a particularly good fit for you. However, an ARM with a low initial payment could be a smarter way to lower your mortgage payments if you expect to move within the near future. Refinancing can also cause your total finance charges to be higher over the life of the loan.
Is your refinance goal mainly to "cash out" some home equity? It could be you want to update your kitchen, pay your child's college tuition bill, or take your dream vacation. Then you will need to find a loan higher than the balance remaining of your existing mortgage loan.With this goal, you need You may not increase your mortgage payment, however, if you've had your current mortgage for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Perhaps you'd like to cash out a portion of the equity (cash out) to put toward other debt. If you own some debt with high interest (like credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of home equity.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your home equity quicker? In that case, you need to look into refinancing to a short term mortgage loan - such as a fifteen-year loan. You will be paying less interest and growing your home equity more quickly, even though your monthly payments will generally be higher than you were paying. On the other hand, if your existing longer term mortgage has a low balance remaining, and was closed a while ago, you could be able to make the move without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please contact us at 478-474-4600. We are here for you.