Selecting a Refinancing Loan
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There aren't as many refinance loan programs as there are applicants, but it seems like it at times! Contact us at 724-933-9070 and we will match you with the refinance program that fits you best. There are some general things to keep in mind as you consider your options.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then the best choice 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 — in which the rate of interest varies. Even when interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. This kind of loan can be especially a wise idea if you aren't expecting a move within the next 5 years or so. However, an ARM with a initial low payment may be a smarter way to reduce your mortgage payments if you expect to move in the next few years.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some home equity for an infusion of cash? It could be you need to update your kitchen, pay your child's college tuition bill, or go on a special family vacation. With this in mind, you will want to find a loan above the remaining balance of your present mortgage.So you want to qualify for a loan program for a higher number than the remaining balance on your present mortgage loan. If you've had your current mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment higher.
Consolidating Your Debt
Do you want to pull out some home equity to consolidate other debt? Good plan! If you have built up some equity, paying off other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of money each month.
Building up Equity More Quickly
Are you dreaming of paying your loan off faster, while building up your home equity faster? In that case, you'll want to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. Although your mortgage payment amount will probably be more, you will save on interest; so your equity amount will rise up faster. On the other hand, if your existing longer term mortgage has a low remaining balance, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you determine your options and the multiple benefits in refinancing, please contact us at 724-933-9070. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us: 866-313-0412.