Refinancing: Which Program is for You?

When you are overwhelmed with so many choices, it may seem like there are even more refinance programs than applicants! Call us at 253-848-1255 and we'll help you qualify for the best refinance program to fit your financial needs. In order to review your options, you need to think about what you want to achieve with the refinance.

Lowering Your Payments

Is your refinance primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan could be a good option for you. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the loan, even when interest rates rise. If you are planning to live in your home for at least five more years, a fixed-rate loan may be an especially good fit for you. However, if you can see yourself selling your home within the next few years, an ARM mortgage with a small initial rate could be the best way to reduce your monthly payments.

Getting Out some Cash

Is "cashing out" your main purpose for your refinance? It could be you're planning a special vacation; you need to pay college tuition for your child; or you plan to renovate your home. So you'll want to get a loan for more than the balance remaining on your present mortgage loan.With this goal, you'll want to find a loan program for a higher number than the remaining balance on your present mortgage. You might not have an increase in your monthly payemnt, though, if you have had your existing mortgage loan for a while, and/or your loan interest rate is high.

Consolidating Debt

Do you want to pull out a portion of your equity to consolidate other debt? Great plan! If you own any higher interest debts (such as credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of equity.

Building up Equity Faster

Are you planning to fatten your equity faster, and pay off your mortgage sooner? Consider refinancing to a shorterterm loan, like a 15-year mortgage. You will be paying less interest and growing your equity more quickly, although your payments will generally be more than they were. However, if you've held your current thirty year mortgage for a number of years and the remaining balance is somewhat low, you might be do this without increasing your monthly payment — you may even be able to save! To help you understand your options and the multiple benefits of refinancing, please contact us at 253-848-1255. We would love to help you reach your goals!

Want to know more about refinancing? Call us at 253-848-1255.

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