Refinancing: Which Loan Program is for You?
There are an enormous number of refinancing programs available to borrowers. Contact us at 610-565-3600 and we will help you qualify for the perfect refinance loan for your financial needs. What are your reasons for your refinance loan? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a good choice could be a low fixed-rate loan. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates rise later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low interest rate for the life of your mortgage. A fixed-rate mortgage can be especially a wise choice if you don't plan to move within the next five years or so. However, an ARM with a initial low payment could be a smarter way to reduce your mortgage payments if you expect to move within the near future.
Are you refinancing primarily to "cash out" some home equity? Your house needs renovating; your daughter has been accepted to college and needs tuition money; or you are taking your family on a cruise. In this case, you'll want to qualify for a loan for more than the balance remaining on your existing mortgage.With this goal, you will need However, if your mortgage rate is high now and you've had it for a long time, you may be able to reach your goals without a rise in your mortgage payment.
Do you want to pull out a portion of your equity to consolidate other debt? Yes you can! If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars in your monthly budget.
Switching to a Shorter Term Loan
Are you hoping to fatten your equity faster, and pay your mortgage off more quickly? If this is your plan, the refinance loan can switch you to a mortgage loan program with a shorter term, like a 15 year loan. Even though your mortgage payment amount will usually be more, you can save on interest; so your home equity will build up faster. However, if you have had your current 30-year mortgage loan for a number of years and the remaining balance is relatively low, you may be do this without raising your mortgage payment — it's even possible to save! To help you understand your options and the multiple benefits in refinancing, please contact us at 610-565-3600. We are here for you.
Want to know more about refinancing? Give us a call: 610-565-3600.