There are an enormous number of refinancing programs available to borrowers. We can guide you to choose the loan program that can fit your needs the best. Call us at 503.422.6013 to begin the process. In the interest of looking at your options, you will need to consider your goals for the refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan might be a wise option for you. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate varies. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage loan, even if interest rates rise. A fixed-rate mortgage can be especially a good idea 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 in the near future, an ARM with a small initial rate could be the ideal way to lower your monthly payment.
Are you refinancing primarily to “cash out” some home equity? It could be you need to update your kitchen, pay your child’s college tuition bill, or go on a an Alaskan cruise. In this case, you need to find a loan higher than the balance remaining on your existing mortgage.With this goal, you will need You might not have an increase in your monthly payment, however, if you’ve had your existing loan for a number of years, and/or your interest rate is high.
Maybe you hope to pull out some equity (cash out) to use toward other debt. If you have enough equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a lot of cash every month.
Building up Equity Faster
Are you planning to fatten up 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 – like a fifteen-year loan. You will be paying less interest and growing your equity faster, even though your mortgage payments will likely be higher than you have been paying. However, if you’ve held your current 30 year mortgage for a long time and the loan balance is rather low, you may be able to do this without increasing your monthly payment — it’s even possible to save! To help you figure out your options and the multiple benefits of refinancing, please call us at 503.422.6013. We would love to help you reach your goals!