Refinancing: Which Option is for You?
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There are not as many loan programs as there are applicants, but it seems like it at times! We can help you choose the refinance program that will fit your financial situation the best. Contact us at 918-508-7300 to get started. What do you hope to achieve with refinancing? Considering the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving better mortgage payments and a better rate your main refinance goals? In that case, getting a low, fixed-rate loan might be a wise option for you. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a mortgage where the interest rate varies, called an adjustable rate mortgage (ARM). Unlike ARM loans, a fixed rate mortgage means that once you lock in that rate and close on your mortgage, your interest rate will remain the same for the term of your mortgage. If you plan to live in your home for about five more years, a fixed rate loan may be a particularly good fit for you. But if you do plan to move more quickly, you might want to consider an ARM with a low initial rate in order to achieve lower monthly payments.
Getting Out Some Cash
Is your refinance goal primarily to "cash out" some home equity? Perhaps you need to make home improvements, take care of your kid's college tuition, or take your family on a dream vacation. If this is the case, then you will want to get a loan higher than the remaining balance on your present mortgage loan.With this goal, you'll want However, if your interest rate is high now and you have held it for quite a few years, you may be able to reach your goals without making your mortgage payments rise.
Maybe you hope to cash out some of the equity in your home (cash out) to put toward other debt. If you have built up some home equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a chunk of cash each month.
Building up Equity Faster
Are you dreaming of paying your loan off more quickly, while building up your equity more quickly? You should consider refinancing with a short-term loan, such as a 15-year mortgage loan. You will be paying less interest and increasing your home equity more quickly, although your payments will generally be higher than you were paying. But, you may be able to make the change without a higher monthly payment if your long term loan was closed a while ago, and the remaining balance is somewhat low. You could even make it lower! To help you determine your options and the numerous benefits of refinancing, please call us at 918-508-7300. We are here for you.
Curious about refinancing? Call us at 918-508-7300.