Refinancing: Which Program is for You?
Although it seems like it at times, there are not as many loan programs as there are borrowers! Contact us at (321) 777-7277 and we will match you with the refinance loan program that best fits you. What are your reasons for your refinance loan? Keeping in mind the following will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan might be a wise option for you. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can especially be a wise option. However, an ARM with a low intitial payment could be a wiser way to lower your payments if you expect to move in the next few years.
Are you hoping to cash out some of your home equity in your refinance? Your house needs renovating; your daughter has been accepted to college and needs tuition money; or you are planning a special vacation. With this in mind, you will want to get a loan above the balance remaining of your present mortgage loan.So you want If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Do you hold other debt, perhaps with higher interest, that you want to consolidate? If you have the equity in your home to make it work, paying off other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars in your monthly budget.
Paying it off Sooner
Do you need to build up equity more quickly, and have your mortgage paid off faster? Then, you'll want to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. You will be paying less interest and increasing your equity more quickly, although your mortgage payments will usually be higher than you were paying. But, you might be able to switch without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while back, and the remaining balance is small. You may even make it lower! To help you figure out your options and the numerous benefits in refinancing, please contact us at (321) 777-7277. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us: (321) 777-7277.