Refinancing: Which Option is for You?
There are not as many loan program choices as there are applicants, but at times it feels like it! We can help you select the refinance loan program that will fit your needs the best. Contact us at (919) 771-3379 to get things started. What are your goals for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, the best option could be a low fixed-rate loan. Perhaps you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. This kind of loan is especially a good choice if you don't think you will move within the next 5 years or so. On the other hand, if you can see yourself selling your home before too long, an ARM with a low initial rate could be the ideal way to reduce your monthly payment.
Getting Out some Cash
Is "cashing out" your main reason for your refinance? Maybe you want to update your kitchen, pay your child's college tuition bill, or take your dream vacation. Then you need to find a loan above the remaining balance on your present mortgage loan.Then you will want However, if your mortgage rate is high now and you've held it for quite a few years, you may be able to accomplish your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you have other debt, perhaps with high interest, that you want to consolidate? If you have a fair amount of equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of cash each month.
Paying it off Sooner
Do you hope to build up home equity quicker, and have your mortgage paid off sooner? Then, you want to find out about refinancing to a short term mortgage - like a fifteen-year loan. You will be paying less interest and growing your home equity more quickly, even though your mortgage payments will usually be bigger than you were paying. But, you might be able to switch without a bigger monthly payment if your long term mortgage was closed a while ago, and the balance remaining is low enough. You may even make it lower! To help you determine your options and the multiple benefits in refinancing, please contact us at (919) 771-3379. We will help you reach your goals!
Curious about refinancing your home? Give us a call at (919) 771-3379.