Selecting a Refinancing Loan

The number of refinance options available to borrowers is truly breathtaking. Call us at 623-340-0934 and we will help you qualify for the best refinance loan for your financial needs. There are several questions to ask yourself while you consider the options.

Reducing Your Monthly Payments

Are getting better monthly payments and a lower rate your main refinance goals? In that case, your best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even if rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you set that low interest rate for the term of your loan. This is particularly a wise idea if you don't think you will sell your home within the next five years or so. On the other hand, if you do see yourself moving before too long, an ARM mortgage with a small initial rate may be the best way to reduce your monthly payments.

Cashing Out

Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Your house needs renovating; your son has been accepted to University and needs tuition; or you are planning a special vacation. With this in mind, you'll need to get a loan higher than the balance remaining on your existing mortgage.In this case, you will want to need to qualify for a loan program for a higher number than the balance remaining on your current mortgage. However, if your mortgage rate is currently high and you have held it for quite a few years, you could be able to achieve your goals without making your monthly payments rise.

Consolidating Debt

Perhaps you'd like to cash out some of the home equity (cash out) to use toward other debt. If you have enough equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of money each month.

Paying it off Sooner

Are you dreaming of paying off your loan more quickly, while building up your home equity faster? If this is your goal, your refinance loan can move you to a mortgage loan program with a shorter term, for example: a 15 year loan. Even though your mortgage payments will likely be increased, you can save on interest; so your home equity will build up faster. On the other hand, if your existing long-term mortgage loan has a low remaining balance, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you understand your options and the numerous benefits of refinancing, please call us at 623-340-0934. We are here for you.