Selecting a Refinancing Option
Although it seems like it sometimes, there aren't as many loan programs as there are applicants! Contact us at (207) 571-8034 and we'll work with you to qualify you for the best refinance loan program for your financial situation. What are your reasons for refinancing? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? If so, a good option could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the loan, even if interest rates rise. If you are expecting to stay in your home for about five more years, a loan with a fixed rate may be an especially good fit for you. However, an ARM with a low intitial payment could be a wiser way to lower your payments if you see yourself moving within the near future.
Refinancing to Cash Out
Is "cashing out" your primary reason for refinancing? Perhaps you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you'll want to apply for a loan above the balance remaining of your existing mortgage.In that case, you'll want If you've had your current mortgage loan for quite a while and/or have a mortgage loan with high interest, you might\could be able to do this without making your mortgage payment bigger.
Maybe you'd like to cash out a portion of the equity (cash out) to put toward other debt. If you own any debt with steep interest (like credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have enough home equity.
Building up Equity More Quickly
Are you dreaming of paying off your loan sooner, while building up your home equity more quickly? Then, you'll need to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. You will be paying less interest and increasing your equity faster, even though your payments will usually be bigger than they were. But, you may be able to make the change without a bigger monthly payment if your long term loan was closed a while ago, and the remaining balance is somewhat low. You may even make it lower! To help you determine your options and the multiple benefits of refinancing, please contact us at (207) 571-8034. We are here for you.
Curious about refinancing? Call us: (207) 571-8034.