Refinancing: Which Option is for You?
When you are overwhelmed with all the options, it may seem as if there are even more refinance loan programs than applicants! Contact us at 248-644-1200 and we will match you with the refinance loan program that best fits you. In the interest of looking at your choices, you can think about your goals for your refinance.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan may be a wise option for you. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage loan, even as interest rates rise. If you are expecting to live in your home for at least five more years, a fixed-rate loan may be an especially good option for you. On the other hand, if you do see yourself moving in the near future, an ARM mortgage with a low initial rate could be the ideal way to lower your monthly payment.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some equity for an infusion of cash? It could be you want to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. Then you will want to find a loan higher than the balance remaining of your present mortgage loan.With this goal, you will want However, if your interest rate is currently high and you have held it for a long time, you could be able to reach your goals without a rise in your mortgage payment.
Do you want to pull out some of your home equity to consolidate additional debt? Yes you can! If you own any debt with high interest (like credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of equity.
Paying it off Sooner
Are you dreaming of paying your loan off more quickly, while building up your equity faster? You should consider refinancing to a short-term loan, such as a 15-year mortgage. Although your monthly payment amount will probably be more, you can save on interest; so your equity amount will build up faster. On the other hand, if your existing longer term mortgage has a low remaining balance, and was closed a while ago, you may even be able to make the move without paying more each month. To help you determine your options and the numerous benefits in refinancing, please call us at 248-644-1200. We can help you reach your goals!
Curious about refinancing your home? Give us a call: 248-644-1200.
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