Refinancing: Which Option is for You?

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Although it may seem like it at times, there aren't as many loan programs as there are borrowers! Contact us at 314-835-1195 and we can match you with the loan program that best fits you. surveying your choices, you need to consider what you want to achieve with the refinance.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are planning to stay in your home for about five more years, a fixed rate loan may be a particulary good choice for you. On the other hand, if you do see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate might be the ideal way to reduce your monthly payment.

Refinancing to Cash Out

Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Perhaps you want to make home improvements, take care of your college kid's tuition, or take your family on a dream vacation. So you will want to get a loan for more than the balance remaining on your present mortgage loan.With this goal, you need You may not increase your monthly payemnt, however, if you've had your current loan for a long time, and/or your loan interest rate is high.

Consolidating Your Debt

Perhaps you hope to cash out some equity (cash out) to put toward other debt. If you have enough equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of cash each month.

Switching to a Shorter Term Loan

Are you dreaming of paying off your loan faster, while beefing up your home equity faster? In that case, you'll need to find out about refinancing to a short term mortgage - like a fifteen-year mortgage loan. The mortgage payments will likely be higher than with a long-term loan, but in exchange, that you will pay quite a bit less interest and can build up equity more quickly. However, if you have held your existing 30 year mortgage loan for a long time and the remaining balance is rather low, you could be do this without raising your mortgage payment — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please call us at 314-835-1195. We are here for you.

Curious about refinancing? Give us a call at 314-835-1195.