Refinancing: Which Loan Program is for You?
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When you are overwhelmed with all the choices, it may seem as if there are even more refinance loan programs than borrowers! Call us at 610-853-6500 and we can help you qualify for the perfect loan program to fit your financial needs. There are some general things to have in mind while you consider your options.
Reducing Your Monthly Payments
Are achieving reduced payments and a lower rate your main refinance goals? If so, a good option could be a low fixed-rate loan. Perhaps you currently hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest can vary. Even if interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is especially a wise idea if you aren't planning a move within the next five years or so. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Is "cashing out" your main purpose for your refinance? Perhaps you want to make home improvements, pay your child's college tuition bill, or go on a special family vacation. Then you'll need to get a loan for more than the balance remaining on your current mortgage loan.So you will want If you've had your current mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment bigger.
Do you want to pull out some equity to consolidate additional debt? Great plan! If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars monthly.
Paying it off Faster
Are you planning to fatten your home equity faster, and pay off your mortgage sooner? Then, you'll need to find out about refinancing to a short term mortgage - like a fifteen-year mortgage program. You will be paying less interest and growing your home equity faster, although your monthly payments will usually be bigger than they were. However, if you have held your existing 30-year loan for a long time and the remaining balance is rather low, you might be do this without raising your monthly payment — you may even be able to save! To help you figure out your options and the many benefits of refinancing, please call us at 610-853-6500. We are here for you.
Curious about refinancing your home? Call us at 610-853-6500.