Refinancing: Which Option is for You?

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There are a huge number of refinancing programs available to borrowers. Call us at 269-282-1612 and we can work with you to qualify you for the right refinance loan program to fit your needs. What do you hope to achieve with refinancing? Keeping in mind the information below will help you narrow your choices.

Reducing Your Monthly Payments

Is your refinance primarily to lower your rate and monthly payments? In that case, the best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when rates get higher later, unlike with your ARM, when you get a fixed-rate mortgage, you set the low rate for the term of your mortgage. If you aren't expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a wise choice. However, an ARM with a initial low payment may be a smarter way to lower your mortgage payments if you expect to move in the near future.

Cashing Out

Is "cashing out" your main reason for refinancing? Your house needs updating; your son has gone to college and needs tuition money; or you have a special family vacation planned. In this case, you'll need to find a loan for more than the remaining balance on your present mortgage.Then you need You might not have an increase in your mortgage payment, however, if you have had your current loan for a long time, and/or your interest rate is high.

Debt Consolidation

Do you want to cash out some of your equity to consolidate additional debt? Good plan! If you have the equity in your home to make it work, paying off other high interest debt (like 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 Sooner

Do you want to build up home equity more quickly, and have your mortgage paid off faster? If this is your goal, your refinance can move you to a loan program with a short, such as a 15 year loan. You will be paying less interest and increasing your equity more quickly, although your mortgage payments will usually be higher than they were. But, you might be able to switch without much increase in your monthly payment if your long term mortgage loan was closed a while ago, and the balance remaining is somewhat low. You could even make it lower! To help you figure out your options and the many benefits of refinancing, please call us at 269-282-1612. We are here for you.

Curious about refinancing your home? Call us: 269-282-1612.