Refinancing: Which Option is for You?
There are not as many refinance loan options as there are borrowers, but sometimes it seems like it! We can help you locate the refinance program that will fit your needs the best. Contact us at (520)820-1332 to get things started. What do you hope to achieve with your refinance loan? Considering in mind the following will help you narrow your choices.
Lowering Your Payments
Are getting reduced monthly payments and a lower rate your main reasons for refinancing? In that case, your best option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good option. However, an ARM with a low initial payment may be a better way to reduce your mortgage payments if you plan on moving in the near future.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? It could be you want to pay for home improvements, take care of your college kid's tuition, or take your dream vacation. In this case, you'll want to find a loan above the remaining balance on your present mortgage.Then you want to need to qualify for a loan for a higher amount than the balance remaining on your present mortgage loan. However, if your loan interest rate is high now and you have held it for a long time, you could be able to reach your goals without a rise in your mortgage payment.
Do you have other debt, maybe with high interest, that you want to consolidate? If you have built up some equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of cash each month.
Building up Equity More Quickly
Are you dreaming of paying off your loan faster, while building up your equity more quickly? You should consider refinancing to a short-term loan, often a 15-year mortgage loan. Even though your monthly payments will likely be more, you can save on interest; so your home equity will build up faster. However, if you have held your existing 30 year loan for a number of years and the loan balance is rather low, you might be do this without increasing your monthly mortgage payment — it's even possible to save! To help you understand your options and the many benefits of refinancing, please call us at (520)820-1332. We are here for you.