Refinancing: Which Program is for You?
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There are an enormous number of refinancing programs available to borrowers. We can help you locate the refinance program that will fit your financial situation the best. Contact us at 810.679.2500 to get things started. What are your goals for refinancing? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan may be a good choice for you. Perhaps you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even when interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise option. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Getting Out some Cash
Is "cashing out" your main reason for refinancing? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you are updating your kitchen. In this case, you will need to find a loan higher than the remaining balance of your current mortgage loan.Then you will You will be looking for a loan for a bigger amount than the current balance with your existing mortgage loan in that case. However, if your mortgage rate is currently high and you've held it for a long time, you may be able to accomplish your goals without making your mortgage payments bigger.
Do you want to pull out a portion of your equity to consolidate other debt? Good plan! If you have the equity in your home for it, 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 Sooner
Are you dreaming of paying your loan off faster, while beefing up your home equity faster? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. Your monthly payments will probably be more than they were with a longer term mortgage, but in exchange, you will pay substantially less interest and can build up equity quicker. Conversely, if your existing longer term mortgage loan has a small remaining balance, and was closed a number of years ago, you may be able to make the change without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please call us at 810.679.2500. We would love to help you reach your goals!
Curious about refinancing your home? Call us at 810.679.2500.