Refinancing: Which Option is for You?

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There aren't as many loan options as there are borrowers, but it seems like it sometimes! We can guide you to choose the refinance loan program that will fit your needs the best. Contact us at 208-941-3337 to get things started. There are some general questions to ask yourself while you consider the options.

Lowering Your Payments

Are achieving lower mortgage payments and a better rate your main reasons for refinancing? In that case, a good option could be a low fixed-rate loan. Maybe you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the rate of interest can vary. Even when interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you aren't expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good choice. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced payments.

Refinancing to Cash Out

Is "cashing out" your primary reason for your refinance? It could be you want to make home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. So you will need to get a loan above the balance remaining of your existing mortgage loan.In this case, you want You might not increase your mortgage payment, though, if you have had your existing loan for a long time, and/or your loan interest rate is high.

Debt Consolidation

Perhaps you'd like to pull out a portion of the home equity (cash out) to use toward other debt. If you own any debt with higher interest (such as 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 the right amount of equity.

Paying it off Faster

Are you dreaming of paying your loan off more quickly, while beefing up your equity faster? If this is your plan, your refinance can change you to a loan program with a short, like a 15 year loan. Your mortgage payments will probably be higher than with your longer term loan, but the pay-off is: you will pay quite a bit less interest and will build up equity more quickly. But, you might be able to make the change without much increase in your monthly mortgage payment if your longer term loan was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you determine your options and the numerous benefits of refinancing, please call us at 208-941-3337. We are here for you.

Want to know more about refinancing? Call us at 208-941-3337.


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