Refinancing: Which Loan Program is for You?
There are not as many refinance loan options as there are applicants, but it seems like it sometimes! Call us at (207) 571-8034 and we will match you with the refinance program that is ideal for you. In the interest of looking at your options, you'll need to think about your goals for the refinance.
Lowering Your Payments
Are getting reduced mortgage payments and a lower rate your main refinance goals? In that case, a low, fixed rate loan may be the best loan program for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is particularly a good option if you don't plan to move within the next 5 years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower monthly payments.
Getting Out some Cash
Is "cashing out" your main reason for your refinance? Perhaps you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. So you need to look for a loan above the remaining balance of your current mortgage.With this goal, you want to need to find a loan for a bigger number than the balance remaining on your existing mortgage loan. However, if your mortgage rate is currently high and you've had it for quite a few years, you may be able to accomplish your goals without making your mortgage payments rise.
Perhaps you want to pull out some home equity (cash out) to put toward other debt. If you have a fair amount of home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of money every month.
Building up Equity Faster
Do you want to build up home equity quicker, and have your mortgage paid off faster? Then, you'll need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. Your mortgage payments will probably be higher than they were with a longer term mortgage loan, but the pay-off is: you will pay considerably less interest and can build up equity more quickly. But, you could be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is low. You may even pay less! To help you understand your options and the many benefits of refinancing, please call us at (207) 571-8034. We are here for you.
Curious about refinancing your home? Give us a call: (207) 571-8034.