Refinancing: Which Option is for You?
Even though it seems like it at times, there aren't as many refinance loan options as there are applicants! Call us at 248-644-1200 and we will match you with the refinance loan program that fits you best. There are several questions to ask yourself as you consider your options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage 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). Even if rates come up later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in that low rate for the life of your mortgage. If you are planning to stay in your home for at least five more years, a fixed-rate loan may be a particulary good option for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower payments.
Are you hoping to cash out some of your home equity with your refinance? It could be you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you need to find a loan higher than the remaining balance of your existing mortgage.So you will want However, if your mortgage rate is high now and you have held it for a long time, you could be able to accomplish your goals without an increase in your mortgage payment.
Maybe you'd like to cash out some equity (cash out) to put toward other debt. If you have a fair amount of equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) may help save you a chunk of cash each month.
Building up Equity Faster
Are you planning to fatten up your equity faster, and get your mortgage paid off more quickly? Then, you want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. You will be paying less interest and growing your equity more quickly, although your payments will usually be higher than you have been paying. On the other hand, if your existing long-term mortgage loan has a small remaining balance, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you determine your options and the numerous benefits of refinancing, please call us at 248-644-1200. We will help you reach your goals!
Curious about refinancing your home? Give us a call: 248-644-1200.
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