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.
Crushing Your Refinance
Is your refinance primarily to lower your rate? In that case, the best option could be a lower rate (he didn't just say that did he?). 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, 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. Bottom line is - we'll let you know how long it takes to i) payback your closing costs; ii) if it's better for you to add your closing costs to the loan balance; iii) pay for closing costs with an increase in rate. Those are the three most prevalent ways that consumers handle closing costs. Don't let your bank simply increase your loan size. Know the differences.
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. 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
We do that too.
Paying it off Sooner
Do you hope to build up home equity quicker, and have your mortgage paid off sooner? We have 10 year, 15 year and other terms for you to choose. 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.