Refinancing: Which Loan Program is for You?
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There aren't as many refinance loan programs as there are borrowers, but it feels like it at times! We can guide you to locate the refinance loan program that can fit your needs the best. Call us at (803) 391-3299 to begin the process. There are several questions to ask yourself as you look at your options.
Making Your Payments Lower
Are getting lower mortgage payments and an improved rate your main reasons for refinancing? If so, a good option may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even as interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. This kind of loan can be especially a wise option if you don't think you'll be selling your home 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.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? Maybe you want to make home improvements, pay your child's college tuition bill, or take a cruise. In this case, you want to get a loan above the balance remaining of your current mortgage.So you'll want to qualify for a loan for a bigger amount than the balance remaining on your present mortgage loan. If you've had your existing mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without making your monthly payment bigger.
Do you want to pull out some of your equity to consolidate other debt? Yes you can! If you have built up some equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) could help save you a lot of money every month.
Paying it off Sooner
Are you dreaming of paying your loan off more quickly, while beefing up your home equity more quickly? You should consider refinancing to a shorter term loan, such as a 15-year mortgage. You will be paying less interest and increasing your equity faster, even though your mortgage payments will usually be bigger than you were paying. However, if your existing 30 year mortgage loan rate is considerably higher than rates available, today, and/or the loan balance is considerably lower than it was, originally, you may be do this without increasing your monthly mortgage payment — you may even be able to save! To help you determine your options and the many benefits of refinancing, please call us at (803) 391-3299. We will help you reach your goals!
Want to know more about refinancing? Call us at (803) 391-3299.