Refinancing: Which Option is for You?
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The number of refinance options available is truly breathtaking. Call us at 405-321-5363 and we'll help you qualify for the perfect loan program to fit your financial situation. What are your reasons for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even when rates get higher later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in the low interest rate for the term of your loan. If you plan to live in your home for at least five more years, a fixed rate loan may be a particularly good choice for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced monthly payments. Due to refinancing, your total finance charges can be higher over the life of the loan.
Are you hoping to cash out some of your equity in your refinance? Perhaps you want to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. Then you'll need to qualify for a loan higher than the balance remaining of your current mortgage loan.Then you You'll be looking for a loan for more than the remaining balance with your current mortgage in that case. If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without making your monthly payment higher.
Do you have other debt, maybe with a higher interest rate, that you want to consolidate? If you have the equity in your home to make it work, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you can possible save several hundred dollars in your monthly budget.
Getting a Shorter Term Loan
Are you wanting to fatten up your equity faster, and get your mortgage paid off sooner? If this is your plan, the refinance loan can move you to a mortgage program with a short, like a 15 year loan. Your mortgage payments will likely be more than they were with the long-term mortgage loan, but the pay-off is: you will pay quite a bit less interest and will build up equity more quickly. However, if you have had your existing thirty year mortgage loan for a number of years and the loan balance is rather low, you might be able to do this without raising your mortgage payment — you could even be able to save! To help you understand your options and the numerous benefits in refinancing, please contact us at
405-321-5363. We can help you reach your goals!
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