Which Refinancing Option is Best for You?

When you are overwhelmed with all the options, it may seem as if there are even more refinance loan programs than borrowers! Call us at (602) 332-9544 and we'll help you qualify for the right refinance loan program for your needs. What are your goals for refinancing? Keeping in mind the information below will help you begin your decision process.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — in which the interest rate varies. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage loan, even as interest rates rise. If you are not planning a move in the near future (about 5 years), a fixed-rate mortgage can particularly be a good choice. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced monthly payments.

Refinancing to Cash Out

Are you hoping to cash out some of your home equity in your refinance? Maybe you need to pay for home improvements, pay your child's college tuition bill, or take a cruise. Then you will need to find a loan above the balance remaining of your present mortgage.Then you will need If you've had your existing 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 higher.

Debt Consolidation

Do you want to pull out some equity to consolidate additional debt? Great idea! If you have a fair amount of equity, taking care of other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a lot of money every month.

Getting a Shorter Term Loan

Are you planning to fatten your equity faster, and pay your mortgage off sooner? You should consider refinancing with a short-term loan, such as a 15-year mortgage. Your mortgage payments will probably be higher than they were with a long-term mortgage, but in exchange, that you will pay considerably less interest and will build up equity more quickly. On the other hand, if your existing longer term loan has a small remaining balance, and was closed a while ago, you may even be able to make the move without paying more each month. To help you figure out your options and the many benefits of refinancing, please call us at (602) 332-9544. We would love to help you reach your goals!

Want to know more about refinancing your home? Give us a call at (602) 332-9544.

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