If you find yourself falling into any of the categories mentioned earlier, refinancing could be a viable option for you. If you're interested in exploring how it applies to your unique situation, don't hesitate to contact us today, and we'll be happy to assist you!
This plan allows you to refinance your mortgage for more than you currently owe. The difference and the equity is converted into cash for the homeowner.
If your current mortgage has a high fixed rate and market conditions have led to lower rates, you might consider refinancing to obtain a lower fixed-rate loan. Moreover, if you're currently on an ARM, transitioning to a fixed rate can offer greater stability. While your adjustable rate may be low at present, there's no assurance it will stay that way. However, with a low fixed-rate loan, you secure that favorable rate for the loan's duration. This option is particularly advantageous if you don't intend to relocate within the next five years.
Lower Fixed-Rate Loan
Opting for a Shorter-Term Loan
If your primary objective is to rapidly accumulate equity and settle your mortgage earlier, then selecting a shorter-term loan is likely the optimal route. Often, transitioning to this loan type may result in higher monthly payments, but it also translates to significantly reduced interest payments and a quicker mortgage payoff. Moreover, transitioning from a 30-year fixed to a 15-year fixed loan could yield a larger tax deduction on interest. Nevertheless, there are instances where refinancing to a shorter-term loan might not escalate your monthly payments, especially if you've held your current mortgage for a sufficient duration.
If your existing monthly payments exceed what's financially comfortable for you, exploring refinancing to a longer-term loan could be beneficial. This adjustment would lead to reduced monthly payments as you'll have a longer timeframe to repay the loan. Assessing your current mortgage and determining your desired refinancing goals are initial steps in the process. Once you have clarity on these aspects, you can select the option that aligns best with your objectives.
Opting for a Longer-Term Loan
Why work with us?
At Universal Home Lending Corp, we understand you have many choices, and we understand that making financial decisions can be overwhelming and, at times, challenging. You may wonder, am I making the right decision? Will I choose the right company to help me through this transaction? Will I find someone that will be honest and straightforward with me? Is this the right time for my family and me to purchase or refinance?
These are essential and valid questions, and should not be taken lightly. We pride ourselves in ensuring that our clients walk into every transaction with eyes wide open. In other words, we will take the time to slowly walk you through the process to make sure you are fully aware of the choices available to you, and to provide you with as much information, so you make an educated decision for you and your family.
