Which Refinancing Option is Best for You?
There are many options when it comes to refinancing and we'll work with you to find the best loan program to fit your needs. Here are some scenarios to consider when refinancing is in your future.
Refinancing to Lower the Interest Rate and Monthly PaymentsThen your best option might be a low fixed-rate loan. Maybe you have a fixed-rate mortgage now with a higher rate, or maybe you have an ARM, adjustable rate mortgage, where the interest rate varies. This is especially a good idea if you don't think you'll be moving within the next few years.
Refinancing to Cash-Out Some Home EquityMaybe you want to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. Then you'll want to qualify for a loan for more than the balance remaining on your current mortgage. If you've had your current mortgage for a number of years and/or have a mortgage whose interest rate is higher, you may be able to do this without increasing your monthly payment.
Cash-Out Some Equity to Consolidate Other DebtGood idea if you have the equity in your home to make it work. Paying off other debt with higher interest rates than the interest rate on your mortgage, for example, credit cards, home equity loans, car loans, some student loans, means you can save possibly hundreds of dollars a month.
Build Up Home Equity More Quickly and Pay Off Mortgage SoonerConsider refinancing with a shorter-term loan, such as a 15-year mortgage. Your payments will be higher than with a longer-term loan, but in exchange, you will pay substantially less interest and will build up equity more quickly. If you have had your current 30-year mortgage for a number of years and the loan balance is relatively low, you may be able to do this without increasing your monthly payment too.