Which Refinancing Option is Right for You?
There are a huge number of refinancing programs available to borrowers. We can help you select the loan program that can fit your situation the best. Contact us at (302) 765-8089 to get started. In order to review your options, you'll need to consider what you want to achieve with the refinance.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the ideal option for you. Perhaps you are currently in a loan with a high, fixed interest rate, or a loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you close a mortgage with a fixed rate, you set that low interest rate for the term of your loan. If you are planning to stay in your home for about five more years, a fixed rate mortgage may be an especially good option for you. However, an ARM with a initial low payment could be a smarter way to lower your mortgage payments if you expect to move in the near future.
Getting Out some Cash
Are you refinancing mainly to pull out some equity for an infusion of cash? Your house needs renovating; your son has been accepted to college and needs tuition money; or you are planning a special vacation. Then you will need to apply for a loan higher than the balance remaining of your present mortgage.So you will need You may not have an increase in your mortgage payemnt, however, if you have had your current loan for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Perhaps you want to cash out a portion of the equity (cash out) to put toward other debt. If you have a fair amount of home equity, paying toward other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash each month.
Getting a Shorter Term Loan
Do you plan to build up equity more quickly, and have your mortgage paid off more quickly? You should consider refinancing with a shorterterm loan, often a 15-year mortgage. Your monthly payments will likely be higher than with your longer term mortgage loan, but in exchange, you will pay considerably less interest and can build up equity quicker. However, if you've had your current thirty-year mortgage for a number of years and the remaining balance is somewhat low, you might be do this without raising your monthly payment — it's even possible to save! To help you figure out your options and the numerous benefits of refinancing, please call us at (302) 765-8089. We are here for you.
Want to know more about refinancing? Give us a call: (302) 765-8089.
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