Refinancing: Which Option is for You?
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Even though it seems like it at times, there are not as many refinance options as there are applicants! Contact us at (314) 395-8300 and we can match you with the refinance loan program that best fits you. There are some general things to keep in mind as you review your options.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan might be a wise option for you. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage loan, even as interest rates rise. If you aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a wise loan option. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Getting Out some Cash
Is "cashing out" your primary purpose for refinancing? Perhaps you want to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. In this case, you will need to find a loan higher than the remaining balance on your present mortgage loan.So you'll want You might not increase your mortgage payment, though, if you have had your current mortgage loan for a while, and/or your interest rate is high.
Do you want to cash out some home equity to consolidate other debt? Yes you can! If you hold any debt with higher interest (like credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have the home equity built up to make it work.
Getting a Shorter Term Loan
Do you plan to build up home equity quicker, and pay off your mortgage sooner? Then, you'll need to find out about refinancing to a short term mortgage - such as a fifteen-year loan. The monthly payments will probably be more than with the long-term mortgage loan, but the pay-off is: that you will pay quite a bit less interest and can build up equity more quickly. Conversely, if your current long-term loan has a low remaining balance, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you understand your options and the numerous benefits of refinancing, please call us at (314) 395-8300. We are here for you.
Want to know more about refinancing your home? Give us a call: (314) 395-8300.