Refinancing: Which Program is for You?
When you are overwhelmed with so many choices, it may seem like there are even more refinance loan programs than borrowers! Contact us at (401) 583-4150 and we can match you with the loan program that is ideal for your needs. In order to review your choices, you will need to determine what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice might be a low fixed-rate loan. Maybe you are now in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you close a fixed rate mortgage, you lock in that low interest rate for the term of your mortgage. A fixed-rate mortgage is especially a wise choice if you aren't planning a move within the next five years or so. On the other hand, if you can see yourself selling your home in the near future, an ARM mortgage with a small initial rate might be the best way to reduce your monthly payment.
Is "cashing out" your main purpose for refinancing? Maybe you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you need to get a loan above the balance remaining on your current mortgage.With this goal, you want However, if your interest rate is currently high and you've held it for a long time, you could be able to accomplish your goals without making your mortgage payments rise.
Do you want to pull out some of your home equity to consolidate other debt? Yes you can! If you have the equity in your home to make it work, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars monthly.
Paying it off Faster
Are you dreaming of paying off your loan more quickly, while building up your home equity quicker? In that case, you'll need to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. Your mortgage payments will likely be more than they were with your longer term mortgage loan, but in exchange, that you will pay considerably less interest and can build up equity quicker. However, if you've had your existing thirty year loan for a number of years and the remaining balance is relatively low, you might be do this without increasing your monthly payment — you might even be able to save! To help you figure out your options and the many benefits of refinancing, please contact us at (401) 583-4150. We are here to help you reach your goals!
Curious about refinancing your home? Call us at (401) 583-4150.