Which Refinancing Option is Best for You?
In the market for a new mortgage? We will be glad to help! Call us at 575-769-9006. Ready to get started? Apply Here
Although it may seem like it sometimes, there are not as many loan options as there are borrowers! Contact us at 575-769-9006 and we will match you with the refinance loan program that is ideal for your needs. What do you hope to achieve with refinancing? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are achieving lower payments and an improved rate your main reasons for refinancing? In that case, getting a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even when interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can particularly be a good option. However, an ARM with a initial low payment could be a smarter way to lower your payments if you see yourself moving within the near future.
Are you hoping to cash out some of your home equity with your refinance? Maybe you're dreaming of a cruise; you have to pay college tuition for your child; or you are planning some home improvements. Then you want to find a loan higher than the balance remaining on your present mortgage loan.With this goal, you'll want If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you may be able to do this without making your mortgage payment higher.
Consolidating Your Debt
Do you want to cash out a portion of your home equity to consolidate other debt? Yes you can! If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars a month.
Switching to a Shorter Term Loan
Are you planning to fatten your equity faster, and get your mortgage paid off sooner? Then, you'll need to find out about refinancing to a short term mortgage loan - such as a fifteen-year loan. Your monthly payments will probably be more than with a longer term loan, but in exchange, you will pay substantially less interest and will build up equity quicker. On the other hand, if your existing long-term mortgage has a low balance remaining, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you determine your options and the multiple benefits of refinancing, please contact us at 575-769-9006. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call at 575-769-9006.