Which Refinancing Program is Right for You?
When you are overwhelmed with so many choices, it may seem like there are even more refinance programs than applicants! We can guide you to select the loan program that will fit your needs the best. Call us at 801.255.6582 to get started. In the interest of looking at your options, you will need to determine what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan may be a good choice for you. Perhaps you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — in which the interest rate can vary. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the mortgage, even as interest rates rise. If you aren't expecting to sell your home in the near future (about five years), a fixed-rate mortgage can particularly be a wise option. However, if you do see yourself moving within several years, an adjustable rate mortgage with a low initial rate might be the ideal way to bring down your monthly payments.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity in your refinance? It could be you're planning a special vacation; you need to pay college tuition for your child; or you are planning some home improvements. In this case, you will want to look for a loan for more than the balance remaining of your present mortgage.So you want You may not increase your mortgage payemnt, though, if you have had your existing mortgage for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Perhaps you hope to pull out a portion of the equity in your home (cash out) to put toward other debt. If you hold some higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the equity built up to make it work.
Paying it off Faster
Are you dreaming of paying your loan off sooner, while beefing up your home equity more quickly? If this is your hope, the refinance mortgage can switch you to a mortgage loan program with a short, like a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your monthly payments will usually be higher than you were paying. On the other hand, if your current longer term loan has a low balance remaining, 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 multiple benefits of refinancing, please call us at 801.255.6582. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call: 801.255.6582.