Choosing a Refinancing Program
The number of refinance options available is truly breathtaking. Contact us at (610) 889-7467 and we can work with you to qualify you for the right loan program for your financial situation. What are your reasons for your refinance loan? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are achieving better mortgage payments and a lower rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even when rates get higher later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low interest rate for the term of your loan. A fixed-rate mortgage can be particularly a wise idea if you don't think you will sell your home within the next 5 years or so. However, if you can see yourself selling your home in the near future, an ARM with a small initial rate might be the ideal way to lower your monthly payment.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity with your refinance? Your house needs updating; your son has been accepted to college and needs tuition money; or you have a special family vacation planned. So you need to look for a loan for more than the balance remaining on your present mortgage.In that case, you'll want to find a loan for a bigger amount than the remaining balance on your existing mortgage. You may not increase your monthly payemnt, however, if you have had your current mortgage for a number of years, and/or your interest rate is high.
Do you want to pull out a portion of your equity to consolidate other debt? Excellent idea! If you hold some higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have enough home equity.
Getting a Shorter Term Loan
Do you want to build up equity more quickly, and have your mortgage paid off sooner? In that case, you need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. Your monthly payments will likely be higher than with your long-term loan, but the pay-off is: you will pay quite a bit less interest and will build up equity quicker. Conversely, if your existing long-term mortgage loan has a low balance remaining, and was closed a while ago, you could be able to make the change without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please call us at (610) 889-7467. We are here for you.
Curious about refinancing your home? Give us a call at (610) 889-7467.