Selecting a Refinancing Program
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There are a huge number of refinancing options available to borrowers. Call us at (206) 234-7544 and we will help you qualify for the best refinance program for your financial situation. There are several things to bear in mind as you look at your options.
Making Your Payments Lower
Are achieving lower monthly payments and an improved rate your main reasons for refinancing? In that case, applying for a low, fixed-rate loan may be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even when rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you set that low interest rate for the life of your mortgage. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a good option. However, an ARM with a initial low payment may be a better way to reduce your monthly payments if you expect to move within the near future.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? It could be you need to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. With this in mind, you will need to apply for a loan higher than the balance remaining of your present mortgage loan.With this goal, you will need If you've had your current mortgage for quite a while and/or have a mortgage loan with a high interest rate, you may be able to do this without making your monthly payment bigger.
Consolidating Your Debt
Do you have other debt, perhaps with a high interest rate, that you want to consolidate? If you have some higher interest debts (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Do you plan to build up equity quicker, and pay off your mortgage sooner? You should consider refinancing to a short-term loan, like a 15-year mortgage. The payments will probably be higher than they were with a longer term loan, but the pay-off is: you will pay considerably less interest and will build up equity quicker. However, if you have had your existing thirty-year loan for a number of years and the loan balance is rather low, you may be able to do this without increasing your mortgage payment — you may even be able to save! To help you figure out your options and the many benefits of refinancing, please call us at (206) 234-7544. We are here to help you reach your goals!