Refinance Your Mortgage and Be Happy

There are a huge number of refinancing programs available to borrowers. Carmen Aumendo Jr., your Wholesale Mortgage Pro can help you select the refinance program that will fit your financial situation the best. Contact me at 410-779-9339 to get things started. What do you hope to achieve with your refinance loan? Keep in mind that the information below will help you begin your decision process.

Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed-rate loan may be the ideal choice for you. Perhaps you are currently in a loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies – an adjustable-rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set that low-interest rate for the life of your loan. A fixed-rate mortgage is especially a wise idea if you don’t think you’ll be selling your home within the next five years or so. However, an ARM with a low initial payment may be a better way to lower your mortgage payments if you expect to move in the next few years.

Are you planning to cash out some of your equity in your refinance? Perhaps you need to make home improvements, pay your child’s college tuition bill, or take a cruise. With this in mind, you’ll want to get a loan above the balance remaining on your existing mortgage loan for the amount of cash you need. If you’ve had your existing mortgage for a long time and/or have a mortgage loan whose interest rate is high, you may be able to do this without making your mortgage payment bigger.

Do you want to pull out some equity to consolidate additional debt? Great idea! If you hold some higher interest debts (like credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of home equity.

Are you dreaming of paying your loan off more quickly, while building up your equity quicker? You should consider refinancing to a shorter term loan, such as a 15-year mortgage loan. You will be paying less interest and growing your equity more quickly, even though your mortgage payments will generally be bigger than you have been paying. But, you might be able to make the change without a higher monthly mortgage payment if your long term mortgage was closed a while back, and the balance remaining is low enough. You may even make it lower!