Exploring Your Refinance Options
Exploring Your Refinance Options
Once you know what you would like to accomplish through refinancing your home, it is important to figure out which loan type will give you the most benefit. We are going to go over the loan features that best suit: lowering your payment, taking equity out, or shortening the term of your mortgage.
Lower Payment
Looking for more flexibility in your budget? Here are a few ways to decrease your monthly mortgage payment.
Change Your Mortgage Term
If having the lowest possible payment without the need to quickly payoff the loan is what you are looking for, then lengthening your mortgage term may be the right option. Increasing the amount of time you have left to repay the loan, makes future payments smaller.
Equity Take Out
When it comes to taking equity out of your home, there are many options to choose from depending on your goals. If you are looking to take out as much cash as possible, a longer term loan will give you the lowest monthly payment.
If you are looking to consolidate your current debts with the overall goal to be debt-free, a shorter term may be a better choice. You could apply the savings from the consolidation to the higher payments associated with a 15 year mortgage term and make your money work harder for you.
Shorten Your Term
Shortening the term of your mortgage is a great way to pay off your home more effectively. A shorter term loan usually comes with the benefit of a lower interest rate, saving you a significant amount of money over the life of the loan. Finding the right term length for you will depend on your situation and speaking with a Sunlite mortgage professional is a great way to determine the most advantageous route.
