Which Refinancing Program is Right for You?
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Although it may seem like it at times, there are not as many refinance loan programs as there are borrowers! Contact us at 206-409-5626 (LOAN) (LOAN) and we'll help you qualify for the perfect refinance loan program to fit your financial needs. In order to review your choices, you can determine your goals for your refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the right option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even if interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you expect to live in your home for at least five more years, a fixed rate loan may be a particularly good fit for you. On the other hand, if you can see yourself selling your home before too long, an ARM mortgage with a small initial rate may be the ideal way to lower your monthly payment. Refinancing can also cause your finance charges to be more over the life of the loan.
Refinancing to Cash Out
Is your refinance goal mainly to "cash out" some home equity? Your home needs improvements; your son has gone to University and needs tuition money; or you are planning a special vacation. Then you want to apply for a loan higher than the remaining balance on your present mortgage.Then you will want You might not increase your monthly payment, though, if you've had your existing loan for a long time, and/or your loan interest rate is high.
Maybe you'd like to cash out some equity (cash out) to put toward other debt. If you have the home equity for it, paying off other high interest debt (for example: home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars per month.
Paying it off Sooner
Do you want to build up equity quicker, and have your mortgage paid off faster? You should consider refinancing to a shorterterm loan, like a 15-year mortgage. Your payments will probably be more than they were with a longer term mortgage, but in exchange, you will pay quite a bit less interest and will build up equity more quickly. However, if you've held your current 30-year mortgage for a number of years and the remaining balance is somewhat low, you may be do this without increasing your monthly mortgage payment — it's even possible to save! To help you figure out your options and the many benefits in refinancing, please contact us at
206-409-5626 (LOAN) (LOAN). We would love to help you reach your goals!
Curious about refinancing? Call us at
206-409-5626 (LOAN) (LOAN).