Refinancing: Which Loan Program is for You?
When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than borrowers! Contact us at (610) 889-7467 and we will help you qualify for the right loan program to fit your needs. There are some general things to keep in mind as you review the options.
Making Your Payments Lower
Are achieving reduced monthly payments and a better rate your main reasons for refinancing? Then a good option could be a low fixed-rate loan. Maybe you now hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even when interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage can be especially a good idea if you don't plan to move within the next 5 years or so. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Is "cashing out" your primary purpose for your refinance? It could be you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you'll need to apply for a loan above the balance remaining on your current mortgage loan.With this goal, you'll want If you've had your current mortgage for a number of years and/or have a mortgage whose interest rate is high, you may be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Do you hold other debt, maybe with a higher interest rate, that you want to consolidate? If you have any higher interest debts (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the equity built up to make it work.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while building up your equity more quickly? If this is your plan, the refinance can move you to a mortgage loan program with a short, like a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your monthly payments will generally be more than they were. On the other hand, if your current longer term mortgage has a small balance remaining, 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 call us at (610) 889-7467. We are here to help you reach your goals!
Curious about refinancing your home? Call us at (610) 889-7467.