Refinancing: Which Program is for You?
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Even though it seems like it sometimes, there aren't as many loan programs as there are applicants! We can help you locate the loan program that can fit your situation the best. Contact us at 505-881-2000 to get things started. There are several things to keep in mind as you review the choices.
Making Your Payments Lower
Are getting reduced payments and an improved rate your main refinance goals? In that case, a good option might be a low fixed-rate loan. Maybe you currently have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even when interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can particularly be a great loan option. However, an ARM with a initial low payment may be a smarter way to lower your mortgage payments if you expect to move within the near future. As a result of refinancing, your total finance charges can be higher over the life of the loan.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? Your home needs new carpet; your son has gone to University and needs tuition money; or you are planning a special vacation. So you will want to find a loan for more than the balance remaining of your current mortgage loan.So you will need However, if your interest rate is currently high and you've had it for quite a few years, you could be able to reach your goals without an increase in your mortgage payment.
Do you have other debt, maybe with a high interest rate, that you need to consolidate? If you have any debt with higher interest (such as credit cards or car loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have enough home equity.
Building up Equity Faster
Do you want to build up home equity quicker, and have your mortgage paid off more quickly? Consider refinancing to a shorterterm loan, often a 15-year mortgage. Your payments will probably be more than they were with a longer term mortgage loan, but in exchange, that you will pay considerably less interest and will build up equity more quickly. However, if you have held your existing thirty-year mortgage loan for a number of years and the loan balance is relatively low, you might be do this without increasing your mortgage payment — you might even be able to save! To help you figure out your options and the numerous benefits in refinancing, please contact us at 505-881-2000. We are here for you.
Want to know more about refinancing your home? Give us a call at 505-881-2000.