Refinancing: Which Program is for You?
There are a huge number of refinancing options available to borrowers. Contact us at 248-644-1200 and we will match you with the refinance program that best fits you. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your loan, even when interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can especially be a good option. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced payments.
Are you planning to cash out some of your home equity with your refinance? Your house needs new carpet; your daughter has been accepted to college and needs tuition money; or you are taking your family on a cruise. Then you will want to get a loan higher than the balance remaining on your current mortgage.Then you will need However, if your loan interest rate is high now and you've had it for a long time, you may be able to achieve your goals without making your mortgage payments increase.
Maybe you'd like to cash out a portion of the equity (cash out) to put toward other debt. If you have the equity in your home for it, taking care of other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars in your budget each month.
Switching to a Shorter Term Loan
Are you hoping to fatten up your equity faster, and pay your mortgage off sooner? Consider refinancing with a short-term loan, often a 15-year mortgage loan. The monthly payments will probably be more than with the longer term mortgage loan, but in exchange, that you will pay considerably less interest and will build up equity more quickly. But, you may be able to switch without much increase in your monthly payment if your long term mortgage was closed a while ago, and the remaining balance is low. You could even make it lower! To help you determine your options and the numerous benefits of refinancing, please call us at 248-644-1200. We can help you reach your goals!
Curious about refinancing? Give us a call at 248-644-1200.
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