Mortgage Planning Group

Which Refinancing Option is Right for You?

Shopping for a mortgage? We’d be happy to talk about your mortgage needs! Call us at (412) 241-2001. Ready to begin? Apply Online Now.

There are not as many refinance loan options as there are applicants, but it feels like it sometimes! Call us at (412) 241-2001 and we will match you with the refinance loan program that is ideal for you. What are your goals for your refinance loan? Keeping in mind the following will help you narrow your choices.

Making Your Payments Lower

Are achieving lower monthly payments and a lower rate your main refinance goals? In that case, a low, fixed rate loan may be the right option for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set the low interest rate for the life of your mortgage. This kind of loan can be especially a wise choice if you don’t plan to sell your home within the next five years or so. However, if you can see yourself selling your home within the next few years, an ARM with a low initial rate might be the ideal way to reduce your monthly payments. Refinancing can also cause your total finance charges to be more over the life of the loan.

Refinancing to Cash Out

Are you refinancing mainly to pull out some home equity for an infusion of cash? Your home needs improvements; your daughter has gone to University and needs tuition money; or you have a special family vacation planned. In this case, you will need to get a loan higher than the remaining balance on your existing mortgage loan.With this goal, you’ll need However, if your mortgage rate is high now and you’ve had it for a long time, you may be able to accomplish your goals without a rise in your mortgage payment.

Debt Consolidation

Do you hold other debt, maybe with a higher interest rate, that you want to consolidate? If you have any higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have enough equity.

Getting a Shorter Term Loan

Are you dreaming of paying your loan off more quickly, while beefing up your home equity faster? Consider refinancing with a short-term loan, such as a 15-year mortgage. Even though your mortgage payment amount will probably be increased, you can be paying less interest; so your equity will rise up faster. But, you could be able to make the change without a higher monthly payment if your long term mortgage was closed a while ago, and the remaining balance is low enough. You may even pay less! To help you understand your options and the many benefits in refinancing, please contact us at (412) 241-2001. We will help you reach your goals!