Refinancing: Which Program is for You?
The huge number of refinance options available can be overwhelming. We can guide you to select the refinance program that will fit your financial situation the best. Call us at (321) 777-7277 to begin the process. In the interest of looking at your options, you will need to think about your goals for your refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Maybe you now have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest varies. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage loan, even if interest rates rise. This kind of loan can be particularly a wise idea if you don't think you'll be selling your home within the next 5 years or so. However, if you can see yourself moving before too long, an ARM with a low initial rate could be the ideal way to reduce your monthly payment.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? It could be you're dreaming of a cruise; you need to pay college tuition for your child; or you are planning some home improvements. With this in mind, you want to get a loan higher than the balance remaining on your current mortgage.With this goal, you want to find a loan program for a higher number than the balance remaining on your present mortgage. If you've had your existing mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without making your mortgage payment higher.
Maybe you hope to cash out some home equity (cash out) to use toward other debt. If you have enough home equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might help save you a lot of money each month.
Paying it off Faster
Are you planning to fatten up your home equity faster, and get your mortgage paid off more quickly? In that case, you want to look into refinancing to a short term mortgage - for example, a fifteen-year loan. You will be paying less interest and increasing your equity faster, although your monthly payments will likely be more than they were. But, you might be able to switch without a higher monthly mortgage payment if your longer term mortgage was closed a while back, and the remaining balance is somewhat low. You could even pay less! To help you figure out your options and the numerous benefits in refinancing, please contact us at (321) 777-7277. We will help you reach your goals!
Curious about refinancing? Give us a call: (321) 777-7277.