Selecting a Refinancing Program
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than applicants! We can guide you to locate the loan program that will fit your financial situation the best. Call us at (401) 583-4150 to get things started. surveying your choices, you should think about your goals for your refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the best choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even if rates rise later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in that low interest rate for the life of your mortgage. This kind of loan is especially a wise choice if you don't think you'll be moving within the next five years or so. However, an ARM with a initial low payment may be a smarter way to lower your payments if you plan on moving in the near future.
Are you refinancing mainly to pull out some equity for an infusion of cash? Your home needs new carpet; your daughter has gone to college and needs tuition money; or you have a special family vacation planned. With this in mind, you need to find a loan higher than the remaining balance on your present mortgage loan.So you'll want to find a loan for a bigger number than the balance remaining on your existing mortgage loan. You might not have an increase in your monthly payemnt, however, if you've had your current mortgage for a number of years, and/or your loan interest rate is high.
Maybe you'd like to pull out some of the home equity (cash out) to use toward other debt. If you hold some higher interest debts (such as 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 enough home equity.
Paying it off Sooner
Are you dreaming of paying off your loan faster, while beefing up your home equity quicker? If this is your goal, the refinance loan can change you to a mortgage program with a short, such as a 15 year loan. You will be paying less interest and growing your equity more quickly, even though your monthly payments will likely be bigger than they were. Conversely, if your existing longer term loan has a small remaining balance, and was closed a while ago, you could be able to make the switch without paying more each month. To help you understand your options and the multiple benefits of refinancing, please contact us at (401) 583-4150. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us at (401) 583-4150.