Which Refinancing Program is Right for You?
There are a huge number of refinancing options available to borrowers. We can help you locate the loan program that can fit your financial situation the best. Call us at (610) 889-7467 to begin the process. There are some general things to keep in mind as you review the choices.
Lowering Your Payments
Are getting reduced payments and a better rate your main refinance goals? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even when rates come up later, unlike with your ARM, when you get a mortgage with a fixed rate, you set that low interest rate for the term of your mortgage. If you expect to stay in your home for about five more years, a fixed rate loan may be an especially good choice for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.
Is "cashing out" your main reason for your refinance? It could be you want to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. In this case, you want to get a loan above the remaining balance of your existing mortgage loan.Then you You'll be looking for a loan for a bigger amount than the balance remaining on your current mortgage in this case. However, if your interest rate is currently high and you've held it for a long time, you could be able to achieve your goals without making your mortgage payments rise.
Consolidating Your Debt
Do you want to cash out some home equity to consolidate additional debt? Great plan! If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (like credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars in your monthly budget.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while building up your equity quicker? If this is your wish, your refinance can change you to a loan program with a shorter term, for example: a 15 year loan. Your mortgage payments will probably be higher than they were with the long-term mortgage loan, but in exchange, that you will pay considerably less interest and will build up equity more quickly. Conversely, if your current longer term mortgage loan has a low remaining balance, and was closed a while ago, you may even be able to make the move without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please contact us at (610) 889-7467. We will help you reach your goals!
Want to know more about refinancing? Give us a call at (610) 889-7467.