Which Refinancing Program is Right for You?
When you are overwhelmed with so many options, it may seem like there are even more loan programs than applicants! Contact us at 248-644-1200 and we can work with you to qualify you for the perfect loan program to fit your financial situation. In order to review your choices, you will need to think about your goals for the refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan might be a wise option for you. Maybe you are now in a mortgage with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even when rates come up later, unlike with your ARM, when you get a fixed rate mortgage, you set the low rate for the life of your loan. If you are expecting to stay in your home for about five more years, a fixed-rate loan may be a particulary good choice for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Are you hoping to cash out some of your home equity with your refinance? Maybe you're going on a much needed vacation; you have to pay college tuition for your child; or you plan to renovate your home. In this case, you want to apply for a loan higher than the remaining balance of your existing mortgage loan.With this goal, you'll want However, if your loan interest rate is high now and you've held it for quite a few years, you could be able to achieve your goals without a rise in your mortgage payment.
Perhaps you'd like to pull out a portion of the home equity (cash out) to use toward other debt. If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars in your monthly budget.
Paying it off Faster
Are you wanting to fatten up your home equity faster, and pay off your mortgage sooner? You should consider refinancing to a shorterterm loan, like a 15-year mortgage. Even though your mortgage payments will probably be increased, you will save on interest; so your equity will rise up faster. Conversely, if your existing longer term mortgage has a low remaining balance, and was closed a while ago, you might be able to make the move without paying more each month. To help you understand your options and the numerous benefits of refinancing, please contact us at 248-644-1200. We will help you reach your goals!
Want to know more about refinancing? Give us a call at 248-644-1200.