Refinancing: Which Option is for You?
The huge number of refinance options available to borrowers can be overwhelming. Call us at 248-644-1200 and we will match you with the refinance loan program that is ideal for you. What are your reasons for refinancing? Keeping 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? In that case, the best option could be a low fixed-rate loan. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set the low interest rate for the life of your mortgage. If you are planning to live in your home for at least five more years, a loan with a fixed rate may be a particulary good fit for you. However, if you do see yourself moving within the next few years, an ARM with a small initial rate might be the ideal way to reduce your monthly payments.
Refinancing to Cash Out
Are you refinancing primarily to "cash out" some home equity? Your home needs new carpet; your son has been accepted to college and needs tuition; or you have a special family vacation planned. In this case, you need to apply for a loan above the remaining balance of your present mortgage.So you'll You'll need to find a loan for a higher amount than the remaining balance with your current mortgage loan in this case. However, if your loan interest rate is currently high and you've held it for a long time, you could be able to reach your goals without making your monthly payments bigger.
Consolidating Your Debt
Perhaps you'd like to cash out some home equity (cash out) to put toward other debt. If you own some higher interest debts (such as credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Building up Equity Faster
Do you want to build up home equity more quickly, and pay off your mortgage faster? In that case, you want to look into refinancing to a short term mortgage - like a fifteen-year loan. Your mortgage payments will likely be more than with a longer term loan, but the pay-off is: you will pay quite a bit less interest and can build up equity more quickly. But, you might be able to switch without a bigger monthly payment if your longer term mortgage was closed a while back, and the balance remaining is small. You could even pay less! To help you determine your options and the many benefits in refinancing, please contact us at 248-644-1200. We will help you reach your goals!
Curious about refinancing? Call us at 248-644-1200.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.