Refinancing: Which Option is for You?

There are not as many refinance loan options as there are applicants, but sometimes it seems like it! Call us at (608) 372-9222 and we can work with you to qualify you for the right refinance loan to fit your situation. In order to review your choices, you'll need to think about what you want to achieve with your refinance.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you are currently in a loan with a high, fixed interest rate, or a loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. If you expect to live in your home for at least five more years, a loan with a fixed rate may be an especially good choice for you. However, if you can see yourself selling your home before too long, an ARM with a small initial rate may be the best way to bring down your monthly payments.

Cashing Out

Is your refinance goal mainly to "cash out" some home equity? It could be you're planning a special vacation; you need to pay college tuition for your child; or you are updating your kitchen. In this case, you'll need to qualify for a loan higher than the remaining balance of your present mortgage loan.With this goal, you will want If you've had your existing mortgage for a long time and/or have a mortgage loan whose interest rate is high, you might\could be able to do this without increasing your monthly payment.

Debt Consolidation

Do you want to pull out some of your equity to consolidate additional debt? Yes you can! If you have the home equity for it, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars in your budget each month.

Paying it off Sooner

Are you wanting to fatten your equity faster, and pay your mortgage loan off more quickly? Consider refinancing to a short-term loan, like a 15-year mortgage loan. Your monthly payments will likely be more than with your long-term loan, but in exchange, that you will pay substantially less interest and can build up equity more quickly. But, you may be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the remaining balance is low. You may even make it lower! To help you figure out your options and the numerous benefits in refinancing, please contact us at (608) 372-9222. We will help you reach your goals!