Selecting a Refinancing Program

There are a huge number of refinancing options available to borrowers.  At Crown Realty and Financial, EDUCATING our client is just as important to us as the professional service we provide. 

Contact Us today and we'll help you qualify for the best refinance loan program for your needs.

What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.

 

Lower Your Monthly Payments

If this is your objective, a good choice might be a low fixed-rate loan. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even if rates increase in the future, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low interest rate for the life of your mortgage. If you are planning to stay in your home for at least five more years, a fixed rate mortgage may be a particularly good option for you. However, an ARM with a initial low payment could be a smarter way to lower your payments if you expect to move in the near future.

Accessing Equity

Perhaps you want to make home improvements, pay your kid's college tuition, or take your dream vacation. In this case, you will want to qualify for a loan above the balance remaining on your present mortgage.  If you've had your current mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.

Consolidating Your Debt

Maybe you'd like to access  a portion of the equity in your home to use toward other debt. If you have a fair amount of home equity, taking care of higher interest debt (credit cards or home equity loans, for example) with your home loan may help to save you money each month.

Building up Equity Faster

Are you planning to pay off your mortgage more quickly? In that case, you want to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan.  Your monthly payments will probably be higher than they were with a long-term loan, but in exchange, you will pay substantially less interest and can build up equity more quickly. However, if you have held your existing 30-year mortgage for a number of years and the remaining balance is somewhat low, you may be able to do this without increasing your monthly payment — it's even possible to save!