Refinancing: Which Program is for You?

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There are an enormous number of refinancing options available to borrowers. Contact us at 253.862.0444 and we can match you with the refinance program that is ideal for you. In order to review your options, you will need to list what you want to achieve with your refinance.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a good choice might be a low fixed-rate loan. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. 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. On the other hand, if you do see yourself moving within several years, an ARM with a low initial rate may be the ideal way to bring down your monthly payments.

Cashing Out

Is your refinance goal primarily to pull out some equity for an infusion of cash? It could be you need to pay for home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. Then you will need to look for a loan higher than the balance remaining of your current mortgage loan.With this goal, you will want to qualify for a loan program for a higher number than the remaining balance on your existing mortgage loan. You might not have an increase in your mortgage payment, however, if you've had your current mortgage for a while, and/or your interest rate is high.

Debt Consolidation

Do you have other debt, perhaps with a high interest rate, that you want to consolidate? If you have built up some home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a lot of cash each month.

Building up Equity Faster

Are you wanting to fatten up your equity faster, and pay your mortgage loan off sooner? Then, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. Although your monthly payments will usually be more, you can save on interest; so your home equity will build up faster. But, you might be able to switch without much increase in your monthly mortgage payment if your longer term loan was closed a while ago, and the balance remaining is low. You may even make it lower! To help you determine your options and the numerous benefits of refinancing, please call us at 253.862.0444. We will help you reach your goals!

Curious about refinancing? Give us a call: 253.862.0444.