Which Refinancing Loan Program is Best for You?
Although it seems like it at times, there are not as many refinance options as there are applicants! Call us at (321) 777-7277 and we will match you with the refinance program that is best for your needs. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are getting lower payments and an improved rate your main refinance goals? In that case, applying for a low, fixed-rate loan could be a good choice for you. Perhaps you currently hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even when rates get higher later, unlike with your ARM, when you get a mortgage with a fixed rate, you set the low interest rate for the term of your mortgage. If you expect to live in your home for at least five more years, a fixed rate loan may be an especially good fit for you. On the other hand, if you do see yourself selling your home within several years, an adjustable rate mortgage with a low initial rate may be the ideal way to lower your monthly payments.
Getting Out some Cash
Are you hoping to cash out some of your home equity with your refinance? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. Then you need to find a loan for more than the remaining balance of your existing mortgage loan.With this goal, you will need You may not increase your mortgage payemnt, however, if you've had your current loan for a while, and/or your interest rate is high.
Perhaps you hope to cash out a portion of the equity (cash out) to put toward other debt. If you have the home equity for it, paying off other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars in your budget each month.
Switching to a Shorter Term Loan
Do you plan to build up equity quicker, and pay off your mortgage faster? You should consider refinancing with a short-term loan, such as a 15-year mortgage. The mortgage payments will likely be more than with your longer term loan, but in exchange, you will pay quite a bit less interest and can build up equity more quickly. However, if you've had your current 30-year mortgage loan for a long time and the remaining balance is relatively low, you might be do this without increasing your monthly mortgage payment — you might even be able to save! To help you understand your options and the numerous benefits of refinancing, please contact us at (321) 777-7277. We are here to help you reach your goals!
Curious about refinancing? Call us at (321) 777-7277.