Refinancing: Which Loan Program is for You?
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There are not as many refinance loan options as there are applicants, but it seems like it sometimes! Call us at 503-253-3299 and we will work with you to qualify you for the right refinance loan to fit your financial situation. In the interest of looking at your options, you will need to consider your goals for your refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan might be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set that low interest rate for the term of your mortgage. A fixed-rate mortgage can be particularly a good choice if you don't think you'll be selling your home within the next 5 years or so. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate to get lower payments. By refinancing your existing mortgage, your total finance charges may be more over the life of the loan.
Are you wanting to cash out some of your home equity with your refinance? It could be you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you plan to renovate your home. So you need to get a loan for more than the remaining balance on your existing mortgage loan.Then you'll need You may not increase your mortgage payment, however, if you've had your current loan for a long time, and/or your interest rate is high.
Perhaps you'd like to pull out some of the home equity (cash out) to use toward other debt. If you have any debt with high interest (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough equity.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your equity faster? If this is your plan, the refinance can change you to a mortgage loan program with a short, for example: a 15 year loan. You will be paying less interest and growing your home equity faster, even though your monthly payments will generally be more than they were. However, if you've had your existing thirty-year mortgage for a long time and the remaining balance is rather low, you could be do this without increasing your mortgage payment — it's even possible to save! To help you determine your options and the many benefits of refinancing, please call us at
503-253-3299. We are here for you.
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