Which Refinancing Loan Program is Best for You?
There are not as many refinance loan options as there are borrowers, but it seems like it sometimes! We can guide you to select the refinance program that will fit your financial situation the best. Call us at (321) 777-7277 to get things started. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are getting better mortgage payments and a better rate your main refinance goals? If so, getting a low, fixed-rate loan could be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are expecting to stay in your home for about five more years, a fixed-rate loan may be an especially good option for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced payments.
Are you wanting to cash out some of your home equity with your refinance? Your home needs new carpet; your daughter has been accepted to University and needs tuition; or you are taking your family on a cruise. With this in mind, you need to find a loan above the remaining balance of your existing mortgage loan.Then you'll want to need to find a loan for a bigger amount than the balance remaining on your present mortgage. You might not increase your mortgage payemnt, however, if you have had your current mortgage for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to pull out some home equity to consolidate other debt? Excellent idea! If you have the home equity for it, taking care of other debt with higher interest than the rate on your mortgage (for example: credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars each month.
Getting a Shorter Term Loan
Are you hoping to fatten your home equity faster, and pay off your mortgage loan more quickly? If this is your hope, the refinance loan can change you to a loan program with a short, like a 15 year loan. Even though your monthly payments will likely be more, you will be paying less interest; so your home equity will build up faster. But, you may be able to switch without much increase in your monthly mortgage payment if your longer term mortgage was closed a while back, and the remaining balance is small. You could even make it lower! To help you understand your options and the numerous benefits of refinancing, please call us at (321) 777-7277. We are here to help you reach your goals!
Want to know more about refinancing? Give us a call at (321) 777-7277.