Selecting a Refinancing Program

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The huge number of refinance options available to borrowers is truly breathtaking. We can help you choose the refinance program that will fit your financial situation the best. Call us at 913-944-4767 to begin the process. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you begin your decision process.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan might be a good choice for you. Perhaps you currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even as interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you plan to stay in your home for at least five more years, a fixed rate loan may be an especially good fit for you. However, an ARM with a initial low payment could be a smarter way to lower your monthly payments if you expect to move in the near future. By refinancing your current mortgage loan, your total finance charges may be more over the life of the loan.

Cashing Out

Are you planning to cash out some of your home equity in your refinance? It could be you're going on a much needed vacation; you have to pay college tuition for your child; or you plan to renovate your home. Then you need to find a loan higher than the remaining balance of your present mortgage loan.Then you want to qualify for a loan program for a bigger number than the balance remaining on your current mortgage loan. If you've had your existing mortgage for quite a while and/or have a loan with high interest, you may be able to do this without making your monthly payment higher.

Debt Consolidation

Do you want to cash out a portion of your equity to consolidate other debt? Good idea! If you own some debt with steep interest (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.

Switching to a Shorter Term Loan

Do you plan to build up home equity quicker, and pay off your mortgage sooner? If this is your wish, the refinance loan can switch you to a loan program with a short, like a 15 year loan. Even though your monthly payments will likely be increased, you can save on interest; so your equity amount will build up faster. But, you might be able to switch without much increase in your monthly payment if your longer term mortgage was closed a while back, and the remaining balance is low. You may even make it lower! To help you figure out your options and the many benefits of refinancing, please contact us at 913-944-4767. We can help you reach your goals!