Choosing a Refinancing Loan
Even though it may seem like it sometimes, there are not as many loan options as there are applicants! We can guide you to choose the loan program that can fit your needs the best. Call us at (321) 777-7277 to get started. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the right option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even when rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in that low interest rate for the term of your mortgage. If you plan to stay in your home for about five more years, a loan with a fixed rate may be an especially good option for you. However, an ARM with a initial low payment may be a wiser way to lower your payments if you see yourself moving within the near future.
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Perhaps you need to make home improvements, take care of your college kid's tuition, or go on a dream vacation. With this in mind, you will want to get a loan for more than the remaining balance on your present mortgage loan.With this goal, you need If you've had your existing mortgage loan for quite a while and/or have a loan with high interest, you might\could be able to do this without making your monthly payment higher.
Do you want to cash out a portion of your equity to consolidate additional debt? Good plan! If you own some higher interest debts (like credit cards or car loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have the right amount of home equity.
Building up Equity More Quickly
Do you hope to build up equity more quickly, and pay off your mortgage sooner? If this is your goal, the refinance loan can switch you to a mortgage program with a short, like a 15 year loan. You will be paying less interest and growing your equity more quickly, although your mortgage payments will generally be bigger than you have been paying. On the other hand, if your existing long-term loan has a low balance remaining, and was closed a number of years ago, you may even be able to make the change without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please contact us at (321) 777-7277. We are here for you.
Want to know more about refinancing? Give us a call: (321) 777-7277.