Selecting a Refinancing Option
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Although it seems like it at times, there are not as many refinance choices as there are borrowers! We can guide you to find the refinance program that will fit your situation the best. Contact us at (860) 928-6600 to get started. What are your goals for refinancing? Considering in mind the following will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the ideal loan program for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the mortgage loan, even if interest rates rise. This kind of loan is particularly a wise choice if you don't think you'll be selling your home within the next 5 years or so. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get lower payments.
Getting Out some Cash
Are you hoping to cash out some of your equity with your refinance? It could be you want to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. In this case, you'll want to get a loan for more than the remaining balance of your existing mortgage loan.In this case, you want to find a loan program for a higher amount than the balance remaining on your existing mortgage. If you've had your existing mortgage loan for quite a while and/or have a loan with a high interest rate, you might\could be able to do this without increasing your monthly payment.
Do you hold other debt, maybe with higher interest, that you want to consolidate? If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars monthly.
Paying it off Sooner
Are you dreaming of paying off your loan sooner, while beefing up your equity faster? Consider refinancing to a shorterterm loan, like a 15-year mortgage loan. You will be paying less interest and increasing your equity faster, although your monthly payments will likely be more than they were. However, if you have had your existing thirty year mortgage loan for a number of years and the remaining balance is rather low, you may be do this without raising 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 (860) 928-6600. We would love to help you reach your goals!