Are you planning to refinance your mortgage? Do you want to take advantage of lower interest rates or perhaps lower your monthly payments? When you start to shop around for the best offers, it’s important to understand which loans you can get approved for. There are some refinance loans that may be better suited for your financial needs. Follow along in our blog to learn more about the general refinance loans you can apply for.
Rate-and-Term Refinance Loan
If you’re looking to save money on monthly payments or switch your loan from an adjustable rate to a fixed rate, then this loan can help with that financial goal. It can change the interest rate, loan term, or even both, without changing the actual amount of the loan. Experian comments that “if your original mortgage has an adjustable rate, moving to a loan with a fixed rate can help you avoid market fluctuations.”
Cash-Out Refinance Loan
Need quick cash for a home improvement project? Then a cash-out refinance loan may be right for you. When you apply for this type of loan, you are essentially taking out a portion of your home’s equity in order to get a large amount of cash. However, be cautious that this will most likely increase your loan amount, as well as result in higher monthly payments.
Cash-In Refinance Loan
While not as common as other loan alternatives, cash-in refinance loans are still an option for homeowners. Instead of taking out cash, you’re putting money into the loan to reduce the new mortgage balance. Consider this loan if you’re interested in qualifying for a lower interest rates, underwater on your mortgage or want to get rid of private mortgage insurance
Have any questions about the loan process? Get in contact with a representative from American Mortgage Resource, Inc. We can help guide you to make the right financial decision. Call or visit our website for more information. We look forward to speaking with you soon!