Refinancing: Which Loan Program is for You?
There are not as many refinance loan programs as there are borrowers, but at times it feels like it! Call us at 610-572-3635 and we can help you qualify for the perfect refinance program to fit your situation. surveying your choices, you'll need to think about what you want to achieve with your refinance.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan could be a wise choice for you. Perhaps you are currently in a loan with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage loan, even if interest rates rise. If you are not planning on moving in the near future (about 5 years), a fixed-rate mortgage can particularly be a great loan option. On the other hand, if you do see yourself moving in the near future, an ARM with a low initial rate could be the best way to lower your monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary purpose for your refinance? Maybe you're dreaming of a cruise; you have to pay college tuition for your child; or you plan to renovate your home. In this case, you will want to qualify for a loan above the remaining balance of your current mortgage.In this case, you want If you've had your current mortgage loan for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Consolidating Your Debt
Do you hold other debt, perhaps with a high interest rate, that you want to consolidate? If you own some higher interest debts (like credit cards or car loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you dreaming of paying off your loan faster, while building up your home equity quicker? If this is your plan, your refinance loan can switch you to a loan program with a short, like a 15 year loan. Although your monthly payment amount will probably be more, you will be paying less interest; so your home equity will rise up faster. On the other hand, if your current long-term mortgage has a small remaining balance, and was closed a while ago, you may be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please contact us at 610-572-3635. We can help you reach your goals!