Which Refinancing Option is Right for You?
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There aren't as many loan program choices as there are borrowers, but at times it feels like it! Call us at 405-418-8545 and we will help you qualify for the right refinance loan for your needs. In order to review your options, you need to think about what you want to achieve with your refinance.
Lowering Your Payments
Are getting better monthly payments and a better rate your main refinance goals? Then a low, fixed rate loan may be the right choice for you. Perhaps you are presently in a mortgage loan with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the loan, even as interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can particularly be a great option. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower payments.
Refinancing to Cash Out
Are you planning 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 are planning a special vacation. With this in mind, you'll want to find a loan higher than the balance remaining of your existing mortgage.So you You will want to get a loan for a higher amount than the current balance of your existing home loan in this case. If you've had your existing mortgage for quite a while and/or have a loan whose interest rate is high, you might\could be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Perhaps you'd like to pull out some home equity (cash out) to use toward other debt. If you have any higher interest debts (like credit cards or car loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have enough equity.
Paying it off Sooner
Are you planning to fatten your equity faster, and pay off your mortgage sooner? If this is your goal, the refinance loan can move you to a loan program with a short, such as a 15 year loan. The mortgage payments will probably be higher than they were with the long-term mortgage, but the pay-off is: that you will pay considerably less interest and will build up equity more quickly. Conversely, if your existing longer term mortgage loan has a small remaining balance, and was closed a number of years ago, you may be able to make the move without paying more each month. To help you determine your options and the many benefits in refinancing, please contact us at 405-418-8545. We will help you reach your goals!
Curious about refinancing? Give us a call at 405-418-8545.