Refinancing: Which Loan Program is for You?

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There are an enormous number of refinancing options available to borrowers. Call us at (860) 388-9814 and we can help you qualify for the best refinance loan for your needs. There are some general questions to ask yourself as you look at the choices.

Lowering Your Payments

Are achieving reduced monthly payments and an improved rate your main reasons for refinancing? If so, a good choice could be a low fixed-rate loan. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage, even as interest rates rise. A fixed-rate mortgage can be especially a wise option if you don't think you'll be selling your home within the next 5 years or so. On the other hand, if you do see yourself selling your home within the next few years, an ARM mortgage with a small initial rate could be the ideal way to reduce your monthly payments.

Getting Out some Cash

Is "cashing out" your primary reason for your refinance? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. So you need to get a loan higher than the remaining balance of your existing mortgage.In this case, you will You will be looking for a loan for a higher amount than the current balance with your existing mortgage in that case. However, if your loan interest rate is currently high and you've had it for quite a few years, you may be able to achieve your goals without a rise in your mortgage payment.

Consolidating Your Debt

Do you want to cash out some of your home equity to consolidate other debt? Great plan! If you own some higher interest debts (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 the home equity built up to make it work.

Building up Equity More Quickly

Do you plan to build up home equity quicker, and pay off your mortgage more quickly? If this is your hope, your refinance can change you to a loan program with a short, for example: a 15 year loan. You will be paying less interest and growing your equity more quickly, although your mortgage payments will likely be more than you have been paying. However, if you have held your existing 30 year mortgage for a number of years and the remaining balance is rather low, you could be do this without increasing your monthly payment — you might even be able to save! To help you understand your options and the many benefits of refinancing, please call us at (860) 388-9814. We would love to help you reach your goals!

Want to know more about refinancing your home? Call us at (860) 388-9814.