When you are overwhelmed with so many options, it may seem like there are even more loan programs than applicants! Call us at (877) 428-6847 and we will match you with the refinance loan program that is best for your needs. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the best choice for you. Perhaps you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage, even when interest rates rise. If you plan to live in your home for about five more years, a fixed-rate loan may be an especially good choice for you. On the other hand, if you do see yourself moving within several years, an ARM mortgage with a low initial rate might be the ideal way to bring down your monthly payment.
Is your refinance goal primarily to pull out some home equity for an infusion of cash? Your home needs improvements; your daughter has been accepted to college and needs tuition; or you are planning a special vacation. Then you'll want to apply for a loan higher than the remaining balance on your current mortgage.In this case, you want If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.
Consolidate Your Debt
Do you want to pull out some of your home equity to consolidate other debt? Great idea! If you own some higher interest debts (like credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have enough home equity.
Building up Your Equity
Are you dreaming of paying off your loan more quickly, while beefing up your equity more quickly? If this is your plan, your refinance loan can change you to a mortgage program with a shorter term, such as a 15 year loan. The mortgage payments will probably be higher than with a long-term mortgage loan, but the pay-off is: that you will pay quite a bit less interest and can build up equity more quickly. But, you might be able to switch without a bigger monthly mortgage payment if your long term loan was closed a while back, and the remaining balance is low. You may even make it lower!
To help you understand your options and the many benefits in refinancing, please contact us at (877) 428-6847. We would love to help you reach your goals!
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