Choosing a Refinancing Option

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The number of refinance options available is truly breathtaking. Contact us at 503-524-3331 and we can work with you to qualify you for the right loan program to fit your financial needs. What are your reasons for refinancing? Keeping in mind the information below will help you narrow your choices.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the best choice for you. Maybe you now have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even as interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise loan option. However, an ARM with a low initial payment may be a wiser way to lower your payments if you see yourself moving in the near future. Refinancing may also cause your total finance charges to be higher over the life of the loan.

Getting Out Some Cash

Is "cashing out" your primary purpose for refinancing? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. Then you'll need to get a loan above the balance remaining of your existing mortgage.In that case, you'll You'll need to apply for a loan for a higher amount than the balance remaining of your present mortgage loan in that case. However, if your mortgage rate is high now and you've held it for quite a few years, you may be able to achieve your goals without making your monthly payments higher.

Debt Consolidation

Do you want to cash out a portion of your equity to consolidate additional debt? Excellent idea! If you have the equity in your home for it, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars each month.

Paying it off Sooner

Are you dreaming of paying your loan off faster, while building up your equity faster? If this is your wish, the refinance can move you to a loan program with a shorter term, for example: a 15 year loan. The mortgage payments will probably be higher than they were with your long-term mortgage loan, but in exchange, that you will pay considerably less interest and will build up equity quicker. But, you may be able to make the change without a bigger monthly payment if your long term mortgage was closed a while ago, and the remaining balance is low. You may even make it lower! To help you understand your options and the many benefits in refinancing, please contact us at 503-524-3331. We will help you reach your goals!