Which Refinancing Program is Best for You?
There are a huge number of refinancing options available to borrowers. Contact us at (401) 583-4150 and we can match you with the refinance loan program that best fits you. What are your goals for refinancing? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan might be a wise option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even as interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise loan option. However, an ARM with a initial low payment may be a smarter way to lower your mortgage payments if you expect to move in the next few years.
Getting Out some Cash
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Maybe you're dreaming of a cruise; you have to pay college tuition for your child; or you plan to renovate your home. So you will need to get a loan for more than the balance remaining on your current mortgage.In that case, you want to need to get a loan for a bigger amount than the balance remaining on your current mortgage. However, if your mortgage rate is high now and you've had it for quite a few years, you could be able to achieve your goals without making your monthly payments increase.
Consolidating Your Debt
Do you want to pull out some of your equity to consolidate other debt? Good plan! If you have built up some equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) could help save you a lot of cash every month.
Paying it off Sooner
Do you hope to build up equity quicker, and have your mortgage paid off more quickly? If this is your hope, your refinance loan can switch you to a mortgage loan program with a shorter term, for example: a 15 year loan. Your mortgage payments will likely be higher than they were with your longer term loan, but in exchange, you will pay quite a bit less interest and will build up equity more quickly. But, you may be able to make the change without a bigger monthly mortgage payment if your longer term loan was closed a while ago, and the balance remaining is low enough. You could even pay less! To help you determine your options and the many benefits of refinancing, please call us at (401) 583-4150. We are here for you.
Curious about refinancing? Give us a call at (401) 583-4150.