Selecting a Refinancing Loan
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There are a huge number of refinancing programs available to borrowers. Contact us at (216) 524-8500 and we will match you with the refinance loan program that fits you best. There are some general questions to ask yourself as you review your options.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan might be a good option for you. Perhaps you now hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Even when rates come up later, unlike with your ARM, when you get a mortgage with a fixed rate, you set the low interest rate for the life of your loan. If you are planning to stay in your home for about five more years, a fixed rate mortgage may be an especially good choice for you. However, if you do see yourself selling your home before too long, an adjustable rate mortgage with a low initial rate could be the best way to reduce your monthly payments.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? Your home needs updating; your daughter has gone to college and needs tuition money; or you have a special family vacation planned. With this in mind, you need to look for a loan higher than the balance remaining of your present mortgage.In this case, you will want to qualify for a loan for a higher number than the balance remaining on your existing mortgage loan. You may not increase your monthly payment, however, if you've had your existing loan for a number of years, and/or your loan interest rate is high.
Do you want to cash out a portion of your home equity to consolidate other debt? Yes you can! If you hold some debt with high interest (such as credit cards or car loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have the right amount of equity.
Paying it off Faster
Are you hoping to fatten up your equity faster, and pay your mortgage loan off sooner? You should consider refinancing with a short-term loan, like a 15-year mortgage. You will be paying less interest and growing your home equity more quickly, although your mortgage payments will likely be bigger than they were. However, if you've held your existing 30 year loan for a long time and the loan balance is relatively low, you may be do this without raising your monthly mortgage payment — it's even possible to save! To help you understand your options and the multiple benefits of refinancing, please contact us at (216) 524-8500. We can help you reach your goals!
Want to know more about refinancing your home? Call us at (216) 524-8500.