Which Refinancing Loan Program is Right for You?
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The huge number of refinance options available to borrowers is truly breathtaking. We can guide you to select the refinance program that can fit your financial situation the best. Contact us at (573) 302-9990 to get started. What are your reasons for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice might be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even as interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for at least five more years, a loan with a fixed rate may be a particularly good choice for you. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for your refinance? It could be you're planning a special vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you want to get a loan higher than the balance remaining of your current mortgage.In this case, you You'll want to get a loan for more than the remaining balance of your existing mortgage loan in this case. You may not increase your mortgage payment, however, if you have had your current loan for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Maybe you hope to pull out some of the equity in your home (cash out) to put toward other debt. If you have any debt with high interest (such as credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of equity.
Switching to a Shorter Term Loan
Do you plan to build up equity more quickly, and have your mortgage paid off more quickly? If this is your wish, the refinance loan 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 equity more quickly, although your payments will generally be bigger than you have been paying. Conversely, if your current long-term mortgage loan has a small balance remaining, 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 numerous benefits in refinancing, please call us at (573) 302-9990. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call: (573) 302-9990.