Refinancing: Which Program is for You?

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There are not as many loan options as there are applicants, but it feels like it sometimes! We can help you select the loan program that will fit your situation the best. Call us at (610) 296-3600 to begin the process. In order to review your options, you need to list your goals for the refinance.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Perhaps you now hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Even when rates rise later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low interest rate for the term of your mortgage. If you are planning to live in your home for about five more years, a fixed rate mortgage may be an especially good choice for you. On the other hand, if you do see yourself moving within the next few years, an ARM mortgage with a small initial rate may be the ideal way to lower your monthly payments.

Getting Out some Cash

Are you wanting to cash out some of your equity with your refinance? Your house needs new carpet; your daughter has been accepted to college and needs tuition money; or you are taking your family on a cruise. With this in mind, you want to qualify for a loan above the balance remaining on your existing mortgage loan.So you will want to qualify for a loan program for a bigger number than the remaining balance on your existing mortgage loan. However, if your mortgage rate is high now and you've had it for quite a few years, you may be able to reach your goals without making your monthly payments higher.

Consolidating Your Debt

Maybe you want to cash out a portion of the equity in your home (cash out) to put toward other debt. If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars monthly.

Building up Equity Faster

Are you wanting to fatten your home equity faster, and pay your mortgage loan off more quickly? Then, you want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. Your mortgage payments will likely be more than they were with your long-term loan, but in exchange, that you will pay considerably less interest and can build up equity more quickly. On the other hand, if your existing longer term loan has a low balance remaining, and was closed a number of years ago, you might be able to make the move without paying more each month. To help you figure out your options and the many benefits of refinancing, please contact us at (610) 296-3600. We are here to help you reach your goals!

Curious about refinancing your home? Give us a call at (610) 296-3600.