Refinancing:
Which Loan Program is for You?
The vast array of refinance options at your disposal can be overwhelming. Reach out to us, and we'll collaborate with you to determine the optimal refinance program tailored to your circumstances. As you navigate through the choices, consider several key questions to help guide your decision-making process.
Reducing Your Monthly Payments
If your primary objective for refinancing is to reduce your interest rate and subsequently lower your mortgage payments, then a low fixed-rate loan could be an excellent choice.
Refinancing to Cash Out
If your refinance goal is to "cash out" some home equity for expenses like home renovations, tuition fees, or a special vacation, you'll need a loan amount higher than your current mortgage balance. However, you may not want to increase your monthly payment, especially if you've had your existing loan for some time or if your interest rate is high. In such cases, qualifying for a loan exceeding your current mortgage balance can help meet your financial needs without necessarily raising your monthly payment.
Consolidating Your Debt
You may want to you want to pull out some of the equity (cash out) to put toward other debt. If you have a fair amount of equity, taking care of other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) may help save you a lot of money every month.