Which Refinancing Loan Program is Best for You?

There aren't as many loan programs as there are applicants, but sometimes it seems like it! We can guide you to find the refinance program that will fit your financial situation the best. Contact us at 248-644-1200 to get things started. In order to review your choices, you will need to consider your goals for your refinance.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the best choice for you. Maybe you currently hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — in which the interest rate can vary. Even as interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you plan to live in your home for about five more years, a fixed-rate loan may be a particulary good fit for you. However, if you can see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate could be the ideal way to bring down your monthly payments.

Refinancing to Cash Out

Is "cashing out" your main purpose for refinancing? It could be you're dreaming of a cruise; you have to pay college tuition for your child; or you are updating your kitchen. In this case, you'll need to qualify for a loan higher than the balance remaining of your current mortgage.Then you will You'll be looking for a loan for more than the balance remaining with your existing mortgage in that case. However, if your mortgage rate is currently high and you've held it for a long time, you may be able to accomplish your goals without a rise in your mortgage payment.

Consolidating Your Debt

Do you want to cash out a portion of your equity to consolidate additional debt? Great plan! If you have built up some equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a chunk of cash each month.

Switching to a Shorter Term Loan

Are you dreaming of paying your loan off faster, while building up your equity faster? Then, you'll need to find out about refinancing to a short term mortgage - like a fifteen-year mortgage loan. The monthly payments will probably be higher than they were with the longer term mortgage, but in exchange, that you will pay quite a bit less interest and can build up equity quicker. But, you might be able to switch without a higher monthly payment if your long term mortgage was closed a while ago, and the remaining balance is low enough. You may even make it lower! To help you determine your options and the multiple benefits of refinancing, please contact us at 248-644-1200. We are here to help you reach your goals!

Want to know more about refinancing your home? Call us at 248-644-1200.

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