Which Refinancing Option is Best for You?
There are an enormous number of refinancing options available to borrowers. Call us at 248-644-1200 and we can help you qualify for the perfect refinance loan to fit your financial situation. What are your reasons for your refinance loan? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you now hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even when rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you set that low rate for the term of your loan. This is especially a good choice if you don't expect to sell your home within the next five years or so. However, if you can see yourself selling your home within several years, an ARM mortgage with a low initial rate might be the best way to bring down your monthly payments.
Refinancing to Cash Out
Are you planning to cash out some of your equity in your refinance? Your home needs improvements; your son has been accepted to University and needs tuition; or you are taking your family on a cruise. In this case, you need to qualify for a loan for more than the balance remaining of your current mortgage.Then you'll want However, if your mortgage rate is high now and you've had it for a long time, you may be able to reach your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you want to cash out a portion of your home equity to consolidate other debt? Yes you can! If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars monthly.
Paying it off Sooner
Do you hope to build up equity quicker, and pay off your mortgage more quickly? In that case, you'll need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. Although your mortgage payment amount will probably be increased, you will save on interest; so your equity will build up faster. However, if you have held your existing 30 year loan for a number of years and the remaining balance is somewhat low, you might be able to do this without increasing your monthly mortgage payment — it's even possible to save! To help you understand your options and the numerous benefits of refinancing, please call us at 248-644-1200. We are here for you.
Curious about refinancing your home? Call us: 248-644-1200.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.