Selecting a Refinancing Loan

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There are not as many refinance loan programs as there are applicants, but it feels like it at times! We can help you select the refinance program that can fit your needs the best. Call us at 602-953-1700 to get started. There are several questions to ask yourself while you look at your choices.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan might be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even if rates get higher later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low interest rate for the term of your loan. If you are not planning on moving in the near future (about five years), a fixed rate mortgage loan can especially be a good loan option. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve 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

Are you planning to cash out some of your home equity in your refinance? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you need to find a loan higher than the balance remaining of your existing mortgage.With this goal, you You will want to find a loan for more than the remaining balance with your current mortgage loan in that case. However, if your mortgage rate is high now and you've had it for quite a few years, you could be able to reach your goals without an increase in your mortgage payment.

Consolidating Your Debt

Maybe you want to pull out a portion of the home equity (cash out) to put toward other debt. If you hold some debt with higher interest (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of home equity.

Getting a Shorter Term Loan

Are you wanting to fatten your home equity faster, and pay your mortgage loan off more quickly? If this is your plan, your refinance mortgage can move you to a loan program with a shorter term, for example: a 15 year loan. You will be paying less interest and growing your home equity faster, even though your mortgage payments will likely be bigger than you were paying. However, if you have had your current thirty-year mortgage loan for a long time and the loan balance is somewhat low, you may be do this without raising your mortgage payment — you could even be able to save! To help you determine your options and the many benefits of refinancing, please contact us at 602-953-1700. We are here to help you reach your goals!