Choosing a Refinancing Option

There are many refinancing programs available to borrowers. Contact us at 888-554-8402and we'll work with you to qualify you for the perfect refinance program for your situation. There are some general questions to ask yourself while you review your options.

Making Your Payments Lower

Are getting reduced mortgage payments and an improved rate your main refinance goals? Then a good choice might 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 — with which the rate of interest can vary. Different than an ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even when interest rates rise. A fixed-rate mortgage is particularly a wise option if you don't plan to sell your home within the next five years or so. However, if youdosee yourself moving before too long, an adjustable rate mortgage with a low initial rate could be the ideal way to lower your monthly payment. If your home has little or no equity or negative equity you may be able to refinance under the Home Affordable Refinance Program (HARP). HARP is a federal refinance program targeting underwater homeowners. 

Getting Out some Cash / Debt Consolidation

Are you hoping to cash out some of your equity in your refinance? It could be you need to pay college tuition for your child; or you plan to renovate your home. Do you hold other debt, maybe with high interest, that you need to consolidate? If you have some debt with high interest (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the equity built up to make it work.

Building up Equity More Quickly

Are you dreaming of paying your loan off more quickly?  You should consider refinancing to a short-term loan, You may consider reducing your term to  20, 15 or 10 year mortgage. You will be paying less interest and growing your home equity faster, although your mortgage payments will generally be higher than you have been paying. Conversely, if your existing long-term mortgage loan has a low balance remaining, and was closed a while ago, you might be able to make the move without paying more each month.