Which Refinancing Program is Right for You?

There are not as many loan programs as there are applicants, but at times it seems like it! Call us at (919) 355-1034 and we'll help you qualify for the right refinance loan program for your situation. There are some general questions to ask yourself as you look at the options.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, your best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even when rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low interest rate for the life of your loan. If you aren't expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a good loan option. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate to get lower mortgage payments.

Refinancing to Cash Out

Are you hoping to cash out some of your equity with your refinance? It could be you need to make home improvements, pay your child's college tuition bill, or go on a special family vacation. In this case, you will want to find a loan higher than the remaining balance of your existing mortgage.With this goal, you want If you've had your existing mortgage for quite a while and/or have a loan with high interest, you might\could be able to do this without making your mortgage payment higher.

Consolidating Debt

Maybe you'd like to pull out some home equity (cash out) to put toward other debt. If you own some higher interest debts (like credit cards or car loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have enough equity.

Building up Equity More Quickly

Are you dreaming of paying off your loan sooner, while beefing up your equity faster? If this is your goal, your refinance mortgage can move you to a loan program with a shorter term, like a 15 year loan. Although your mortgage payment amount will probably be increased, you can save on interest; so your home equity will rise up faster. Conversely, if your existing long-term loan has a small remaining balance, and was closed a while ago, you may even be able to make the switch without paying more each month. To help you understand your options and the numerous benefits in refinancing, please contact us at (919) 355-1034. We are here for you.