Refinancing
When you are overwhelmed with so many choices, it may seem like there are even more refinance loan programs than borrowers! Call us at 513-474-0899 and we can work with you to qualify you for the best loan program to fit your situation. What do you hope to achieve with refinancing? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are getting better payments and a better rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan could be a good choice for you. Perhaps you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even when rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low rate for the life of your loan. If you aren’t planning on moving in the near future (about five years), a fixed rate mortgage loan can especially be a great choice. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments. By refinancing your current mortgage, your total finance charges could be higher over the life of the loan.
Refinancing to Cash Out on Your Equity
Are you wanting to cash out some of your home equity with your refinance? It could be you need to update your kitchen, take care of your college kid’s tuition, or go on a dream vacation. So you need to find a loan above the remaining balance on your current mortgage loan.So you will You’ll be looking for a loan for more than the balance remaining of your existing mortgage in that case. However, if your loan interest rate is currently high and you have held it for a long time, you could be able to accomplish your goals without a rise in your mortgage payment.
Consolidating Debt
Do you hold other debt, maybe with high interest, that you need to consolidate? If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Switching to a Shorter Term Loan
Are you wanting to fatten your equity faster, and pay your mortgage loan off more quickly? If this is your hope, your refinance mortgage can change you to a mortgage program with a short, for example: a 15 year loan. The monthly payments will probably be more than with a longer term loan, but the pay-off is: you will pay quite a bit less interest and will build up equity more quickly. On the other hand, if your existing long-term mortgage loan has a small 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 figure out your options and the numerous benefits in refinancing, please call us at 513-474-0899. We would love to help you reach your goals!