Which Refinancing Loan Program is Best for You?

When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than borrowers! We can guide you to choose the loan program that will fit your situation the best. Call us at (207) 571-8034 to begin the process. What are your reasons for refinancing? Keeping in mind the following will help you narrow your choices.

Lowering Your Payments

Are achieving lower mortgage payments and an improved rate your main refinance goals? If so, your best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even when interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. This is particularly a wise choice if you aren't expecting a move within the next five years or so. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.

Refinancing to Cash Out

Is your refinance goal primarily to pull out some of your equity for an infusion of cash? It could be you need to update your kitchen, take care of your college kid's tuition, or take your dream vacation. In this case, you will want to get a loan above the remaining balance of your existing mortgage.With this goal, you want However, if your mortgage rate is currently high and you have held it for quite a few years, you may be able to achieve your goals without an increase in your mortgage payment.

Consolidating Your Debt

Do you hold other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have any higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the equity built up to make it work.

Paying it off Faster

Do you want to build up equity more quickly, and pay off your mortgage more quickly? Then, you'll want to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. Your payments will probably be higher than with your long-term loan, but the pay-off is: that you will pay considerably less interest and can build up equity more quickly. On the other hand, if your existing longer term loan has a low remaining balance, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please call us at (207) 571-8034. We are here for you.

Want to know more about refinancing your home? Give us a call at (207) 571-8034.