Choosing a Refinancing Option
When you are overwhelmed with so many options, it may seem like there are even more refinance programs than applicants! We can help you locate the loan program that will fit your situation the best. Call us at 248-644-1200 to begin the process. In the interest of looking at your options, you will need to determine what you want to achieve with your refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a good choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if rates come up later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in the low rate for the life of your loan. This is especially a good choice if you aren't expecting a move within the next 5 years or so. However, if you do see yourself selling your home within the next few years, an adjustable rate mortgage with a small initial rate could be the best way to reduce your monthly payments.
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 dream vacation. With this in mind, you will want to look for a loan for more than the balance remaining of your current mortgage loan.Then you will want to qualify for a loan program for a higher number than the balance remaining on your current mortgage loan. If you've had your current mortgage loan for a number of years and/or have a high interest mortgage, you may be able to do this without making your monthly payment bigger.
Do you hold other debt, perhaps with high interest, that you want to consolidate? If you have the home equity to make it work, taking care of other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars monthly.
Building up Equity More Quickly
Are you dreaming of paying off your loan faster, while building up your home equity more quickly? If this is your goal, the refinance loan can move you to a mortgage program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your home equity faster, although your monthly payments will generally be more than they were. However, if you have had your current 30 year mortgage for a number of years and the loan balance is relatively low, you might be able to do this without increasing your monthly payment — you might even be able to save! To help you figure out your options and the numerous benefits in refinancing, please contact us at 248-644-1200. We can help you reach your goals!
Want to know more about refinancing? Give us a call: 248-644-1200.
Get a Refinance Quote
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