Cash-Out or Cash Back Refinance
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.
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 you currently have a high fixed-rate mortgage and the rates have dropped due to market conditions, then you may want to refinance to a low fixed-rate loan. Also, if you have an ARM, you might consider this option in order to get the security of a fixed rate. Even if your adjustable rate is low now, it is not guaranteed to remain that way; but if you get a low fixed-rate loan, then you lock that low rate in for the life of the loan. This option is a good choice if you are not planning on moving within the next five years.
If your main goal is to quickly build up equity and to pay off your mortgage sooner, then the shorter-term loan is probably your best choice. A lot of times, if you refinance to this type of loan, your monthly payments will be higher, but you will pay substantially less interest and your mortgage will be paid off sooner. Also, you would benefit from a larger tax deduction on interest if you move from a 30-year fixed to a 15-year fixed loan. There are some cases, however, in which you may be able to refinance to a shorter-term loan without raising your monthly payment -if you’ve had your current mortgage for enough years.
If your current monthly payments are higher than is comfortable for your financial situation, then you might want to consider refinancing to a longer-term loan. This will result in a decrease in your monthly payments, since you will have more time to repay the loan. Examining your current mortgage and knowing how you would like to improve it are the first steps you need to take when starting the refinancing process. Once you know this, you can choose the option that will best help you achieve your goals.
Branch Manager // NMLS #1269145
Buying a house is the largest financial decision that many people make. But of course, not everyone has the cash to make that purchase outright. To help close the gap between you and your dream house, Team Picccola- Michael Piccola offers superior mortgage lending services to match your unique needs!
Michael can help you find the right home loan for you. He offers a fast, convenient lending process with exceptional service. Our team assists with everything from USDA loans and veteran loans to FHA loans and more.
Whether you’re a first-time home buyer looking to purchase your first home or a current homeowner looking to refinance, call our mortgage lender in the Tri-State Area, today to get the help you need!
Mortgage Exchange // NMLS #1248883
CLICK HERE to open the accessibility menu
All information is deemed reliable but not guaranteed. Neither mortgage company nor website company shall be responsible for any typographical errors, misinformation, or misprints and shall be held totally harmless. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to lend.
© 2024 Michael Piccola | Team Piccola Loans. Website Managed by LoanSites