Choosing a Refinancing Option

When you are overwhelmed with so many choices, it may seem as if there are even more loan programs than applicants! Contact us at 515-233-5046 and we'll work with you to qualify you for the right refinance program for your situation. There are some general things to bear in mind as you look at the options.

Lowering Your Payments

Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan might be a wise option for you. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage, even when interest rates rise. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can particularly be a good loan option. On the other hand, if you can see yourself moving before too long, an ARM with a low initial rate might be the best way to bring down your monthly payment.

Cashing Out

Are you refinancing mainly to pull out some equity for an infusion of cash? Your home needs updating; your daughter has gone to University and needs tuition; or you are planning a special vacation. In this case, you'll want to find a loan for more than the remaining balance of your current mortgage.Then you'll need If you've had your existing mortgage for a long time and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment bigger.

Consolidating Your Debt

Do you want to pull out some equity to consolidate additional debt? Yes you can! If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (like credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars in your monthly budget.

Getting a Shorter Term Loan

Do you hope to build up equity quicker, and have your mortgage paid off faster? Consider refinancing with a shorterterm loan, like a 15-year mortgage. The monthly payments will probably be higher than with a longer term mortgage loan, but in exchange, that you will pay substantially less interest and will build up equity more quickly. Conversely, if your existing longer term mortgage loan has a small remaining balance, and was closed a number of years ago, you might be able to make the move without paying more each month. To help you determine your options and the numerous benefits of refinancing, please contact us at 515-233-5046. We are here for you.

Want to know more about refinancing your home? Give us a call at 515-233-5046.