Looking for more flexibility in your budget? Here are a few ways to decrease your monthly mortgage payment.
If getting the lowest rate available is what you are interested in, an adjustable rate mortgage (ARM) may be the ideal solution. ARM interest rates are typically lower than their fixed interest rate counterparts due to the interest rate possibly increasing after the fixed-rate period is over. Most clients either move or refinance every 5 to 10 years, which allows you to take advantage of the low interest rates available now without overpaying for a fixed interest rate that may no longer be the best option down the road.
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.
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.
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.
How much interest can you save if you refinance your mortgage? This calculator helps you find out! Enter the specifics about your current mortgage, along with new loan amortization, rate and closing costs. We will then determine how much interest refinancing can save you.