Selecting a Refinancing Option
The number of refinance options available to borrowers is truly breathtaking. Call us at 248-644-1200 and we'll help you qualify for the best refinance loan program for your needs. There are several things to have in mind while you review the choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, the best option may be a low fixed-rate loan. Perhaps you currently hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even if interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you are expecting to live in your home for about five more years, a fixed rate loan may be a particulary good choice for you. However, an ARM with a low intitial payment may be a wiser way to lower your payments if you expect to move in the near future.
Getting Out some Cash
Is "cashing out" your main reason for your refinance? Your home needs updating; your son has been accepted to University and needs tuition; or you have a special family vacation planned. With this in mind, you will want to find a loan higher than the remaining balance of your current mortgage.With this goal, you will need You may not increase your monthly payemnt, though, if you have had your current loan for a number of years, and/or your interest rate is high.
Do you hold other debt, maybe with high interest, that you need to consolidate? If you have a fair amount of home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) could help save you a lot of cash every month.
Getting a Shorter Term Loan
Are you planning to fatten up your home equity faster, and pay off your mortgage sooner? You should consider refinancing to a short-term loan, often a 15-year mortgage loan. Even though your mortgage payments will likely be more, you can save on interest; so your equity amount will rise up faster. However, if you have had your existing thirty year loan for a number of years and the loan balance is rather low, you could be do this without increasing your monthly payment — you may even be able to save! To help you figure out your options and the numerous benefits in refinancing, please call us at 248-644-1200. We would love to help you reach your goals!
Curious about refinancing? Call us at 248-644-1200.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.