Choosing a Refinancing Loan
There are a huge number of refinancing options available to borrowers. We can help you select the loan program that will fit your financial situation the best. Contact us at 248-644-1200 to begin the process. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the ideal choice for you. Maybe you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the interest rate varies. Even when rates come up later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set the low rate for the term of your mortgage. If you are not planning a move in the near future (about 5 years), a fixed-rate mortgage can particularly be a great loan option. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower payments.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? Perhaps you need to update your kitchen, pay your child's college tuition bill, or take a cruise. With this in mind, you'll want to get a loan above the remaining balance of your present mortgage loan.So you'll want to need to get a loan program for a bigger number than the remaining balance on your existing mortgage loan. If you've had your existing mortgage for a long time and/or have a mortgage loan whose interest rate is high, you may be able to do this without making your mortgage payment higher.
Do you hold other debt, perhaps with a higher interest rate, that you'd like to consolidate? If you have the home equity to make it work, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars a month.
Paying it off Sooner
Do you want to build up home equity more quickly, and have your mortgage paid off faster? In that case, you want to find out about refinancing to a short term mortgage - like a fifteen-year loan. Even though your monthly payment amount will likely be more, you can be paying less interest; so your equity will build up faster. However, if you've had your current thirty year mortgage loan for a number of years and the remaining balance is relatively low, you could be able to do this without raising your mortgage payment — you could even be able to save! To help you determine your options and the multiple benefits in 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.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.