Selecting a Refinancing Loan
There are not as many refinance loan programs as there are applicants, but sometimes it seems like it! Call us at 248-644-1200 and we can match you with the refinance loan program that best fits you. surveying your choices, you should consider your goals for the refinance.
Lowering Your Payments
Are getting reduced monthly payments and a lower rate your main reasons for refinancing? In that case, the best choice could be a low fixed-rate loan. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set the low interest rate for the term of your mortgage. If you are expecting to stay in your home for at least five more years, a fixed rate loan may be a particulary good choice for you. However, an ARM with a initial low payment may be a wiser way to reduce your monthly payments if you plan on moving in the near future.
Getting Out some Cash
Are you refinancing primarily to pull out some of your home equity for an infusion of cash? Maybe you want to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. In this case, you want to apply for a loan for more than the remaining balance on your current mortgage.In that case, you'll need However, if your loan interest rate is currently high and you have held it for quite a few years, you may be able to reach your goals without making your mortgage payments bigger.
Do you have other debt, perhaps with higher interest, that you want to consolidate? If you have the home equity for it, 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 may be able to save hundreds of dollars each month.
Building up Equity Faster
Are you hoping to fatten up your home equity faster, and pay off your mortgage more quickly? Then, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. Your mortgage payments will likely be higher than they were with your longer term mortgage loan, but in exchange, that you will pay quite a bit less interest and can build up equity more quickly. Conversely, if your existing longer term loan has a low remaining balance, and was closed a number of years ago, you could be able to make the switch without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please contact us at 248-644-1200. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us: 248-644-1200.