Choosing a Refinancing Program
There aren't as many loan options as there are borrowers, but at times it seems like it! Contact us at (207) 571-8034 and we will match you with the loan program that fits you best. What are your reasons for refinancing? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are achieving lower mortgage payments and a lower rate your main reasons for refinancing? If so, getting a low, fixed-rate loan may be a good choice for you. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage, even if interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can especially be a wise choice. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower monthly payments.
Getting Out some Cash
Are you refinancing primarily to pull out some of your equity for an infusion of cash? Maybe you're planning a special vacation; you need to pay college tuition for your child; or you are updating your kitchen. In this case, you will need to get a loan higher than the remaining balance on your existing mortgage loan.With this goal, you will want to need to find a loan program for a higher amount than the balance remaining on your present mortgage. If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.
Consolidating Your Debt
Perhaps you'd like to cash out a portion of the equity in your home (cash out) to use toward other debt. If you have built up some equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might help save you a chunk of money every month.
Building up Equity More Quickly
Are you hoping to fatten up your equity faster, and get your mortgage paid off sooner? If this is your wish, the refinance can switch you to a loan program with a shorter term, such as a 15 year loan. Although your monthly payments will usually be increased, you can save on interest; so your equity amount will rise up faster. Conversely, if your current longer term mortgage has a small remaining balance, and was closed a while ago, you may even be able to make the change without paying more each month. To help you understand your options and the many benefits of refinancing, please call us at (207) 571-8034. We are here to help you reach your goals!
Want to know more about refinancing? Give us a call at (207) 571-8034.