Refinancing: Which Program is for You?
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Although it may seem like it at times, there aren't as many loan programs as there are borrowers! Call us at (509) 892-9014 and we will match you with the loan program that fits you best. What are your goals for refinancing? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the ideal choice for you. Maybe you currently hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage, even if interest rates rise. If you are planning to stay in your home for at least five more years, a loan with a fixed rate may be a particularly good fit for you. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get lower payments.
Getting Out some Cash
Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Maybe you're planning a special vacation; you need to pay college tuition for your child; or you are updating your kitchen. Then you'll need to find a loan higher than the remaining balance on your present mortgage.So you You will be looking for a loan for more than the current balance with your current mortgage in this case. However, if your mortgage rate is high now and you've had it for a long time, you may be able to accomplish your goals without making your monthly payments higher.
Do you want to cash out some home equity to consolidate additional debt? Yes you can! If you hold any debt with steep interest (such as credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of equity.
Paying it off Faster
Are you wanting to fatten your home equity faster, and pay off your mortgage loan more quickly? If this is your wish, the refinance mortgage can move you to a mortgage program with a short, for example: a 15 year loan. Although your monthly payments will likely be more, you will save on interest; so your home equity will rise up faster. However, if you have held your current 30 year mortgage loan for a number of years and the remaining balance is somewhat low, you might be do this without increasing your mortgage payment — you might even be able to save! To help you understand your options and the numerous benefits in refinancing, please contact us at (509) 892-9014. We would love to help you reach your goals!