Selecting a Refinancing Loan

When you are overwhelmed with so many options, it may seem like there are even more refinance programs than applicants! We can help you choose the refinance loan program that will fit your needs the best. Contact us at 502-491-0749 to get started. There are some general questions to ask yourself while you consider your choices.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan may be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. This kind of loan is especially a wise choice if you aren't planning a move within the next 5 years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments. By refinancing your current mortgage, your total finance charges may be higher over the life of the loan.

Getting Out Some Cash

Is "cashing out" your primary reason for your refinance? Your house needs improvements; your daughter has gone to University and needs tuition money; or you have a special family vacation planned. In this case, you'll want to find a loan for more than the balance remaining of your existing mortgage.Then you'll want to qualify for a loan for a higher amount than the remaining balance on your present mortgage. If you've had your current mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.

Consolidating Your Debt

Perhaps you want to pull out some of the equity in your home (cash out) to use toward other debt. If you have the home equity for it, taking care of other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars in your budget each month.

Paying it off Faster

Are you planning to fatten your home equity faster, and pay your mortgage loan off sooner? Then, you need to find out about refinancing to a short term mortgage loan - such as a fifteen-year loan. You will be paying less interest and increasing your home equity more quickly, although your monthly payments will generally be more than they were. However, if you have had your current 30 year loan for a long time and the remaining balance is rather low, you could be do this without increasing your monthly mortgage payment — you might even be able to save! To help you determine your options and the many benefits of refinancing, please contact us at 502-491-0749. We are here for you.