Which Refinancing Loan Program is Best for You?
There aren't as many refinance loan options as there are applicants, but it seems like it sometimes! Call us at 248-644-1200 and we will match you with the loan program that best fits you. There are several things to bear in mind as you look at the choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your loan, even if interest rates rise. If you plan to live in your home for at least five more years, a fixed-rate loan may be an especially good choice for you. However, if you do see yourself selling your home within several years, an adjustable rate mortgage with a small initial rate might be the ideal way to bring down your monthly payments.
Getting Out some Cash
Is "cashing out" your main reason for your refinance? Maybe you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you will want to look for a loan for more than the remaining balance of your existing mortgage.In that case, you want to need to find a loan program for a higher number than the remaining balance on your present mortgage. You might not have an increase in your monthly payemnt, though, if you have had your current mortgage loan for a while, and/or your loan interest rate is high.
Do you want to cash out some of your home equity to consolidate other debt? Good idea! If you have the equity in your home to make it work, paying off other high interest debt (like credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars monthly.
Building up Equity Faster
Are you planning to fatten your home equity faster, and get your mortgage paid off more quickly? Then, you'll want to find out about refinancing to a short term mortgage loan - such as a fifteen-year loan. The monthly payments will probably be higher than with your longer term mortgage loan, but in exchange, you will pay considerably less interest and can build up equity more quickly. However, if you've held your current 30-year mortgage for a long time and the remaining balance is rather low, you could be able to do this without increasing your mortgage payment — it's even possible to save! To help you determine your options and the multiple benefits of refinancing, please contact us at 248-644-1200. We are here for you.
Curious about refinancing your home? Give us a call: 248-644-1200.
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