Selecting a Refinancing Program
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There are not as many refinance loan programs as there are applicants, but at times it seems like it! We can help you choose the refinance loan program that will fit your financial situation the best. Call us at (610) 647-5454 to get started. surveying your options, you'll need to list your goals for the refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan may be a good option for you. Maybe you currently have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — in which the interest rate can vary. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage loan, even if interest rates rise. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great choice. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you will want to apply for a loan higher than the remaining balance of your present mortgage loan.With this goal, you will You'll need to find a loan for more than the current balance of your present mortgage in this case. If you've had your current mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.
Do you want to cash out a portion of your home equity to consolidate additional debt? Yes you can! If you have built up some home equity, paying off other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of money each month.
Getting a Shorter Term Loan
Are you hoping to fatten up your home equity faster, and pay your mortgage loan off sooner? If this is your hope, your refinance can switch you to a loan program with a shorter term, for example: a 15 year loan. Your payments will probably be higher than they were with a longer term mortgage loan, but the pay-off is: that you will pay substantially less interest and can build up equity quicker. Conversely, if your current longer term loan has a small remaining balance, and was closed a while ago, you could be able to make the change without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please contact us at (610) 647-5454. We are here to help you reach your goals!