Which Refinancing Option is Best for You?
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Even though it may seem like it at times, there are not as many loan options as there are borrowers! Call us at 678-494-8250 and we will match you with the refinance program that fits you best. What are your goals for your refinance loan? Keeping in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan might be a good choice for you. Perhaps you are presently in a loan with a high, fixed interest rate, or a loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you plan to live in your home for about five more years, a fixed-rate loan may be an especially good choice for you. However, if you do see yourself moving in the near future, an ARM with a low initial rate might be the best way to bring down your monthly payments.
Getting Out some Cash
Are you refinancing primarily to pull out some home equity for an infusion of cash? Your home needs new carpet; your son has been accepted to college and needs tuition; or you have a special family vacation planned. With this in mind, you'll want to get a loan higher than the remaining balance of your current mortgage.So you will want to find a loan for a higher number than the balance remaining on your existing mortgage. However, if your interest rate is high now and you've had it for a long time, you may be able to achieve your goals without making your monthly payments rise.
Do you want to cash out some of your home equity to consolidate additional debt? Great idea! If you have the home equity for it, paying off other high interest debt (like credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars in your budget each month.
Building up Equity Faster
Do you want to build up equity more quickly, and have your mortgage paid off more quickly? If this is your wish, the refinance mortgage can move you to a loan program with a short, such as a 15 year loan. You will be paying less interest and increasing your equity faster, although your mortgage payments will generally be more than you were paying. Conversely, if your current long-term loan has a small remaining balance, and was closed a while ago, you may be able to make the move without paying more each month. To help you determine your options and the multiple benefits of refinancing, please call us at 678-494-8250. We can help you reach your goals!
Want to know more about refinancing your home? Call us: 678-494-8250.