Refinancing: Which Loan Program is for You?
There are a huge number of refinancing programs available to borrowers. We can guide you to choose the loan program that will fit your situation the best. Contact us at (321) 777-7277 to get things started. There are some general things to have in mind while you consider the choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, your best option could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if rates come up later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in the low interest rate for the life of your mortgage. If you plan to stay in your home for about five more years, a fixed-rate loan may be a particulary good choice for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Getting Out some Cash
Is "cashing out" your main reason for refinancing? Your house needs updating; your son has gone to college and needs tuition; or you are taking your family on a cruise. Then you will need to find a loan for more than the balance remaining on your current mortgage.In that case, you'll want to need to find a loan program for a bigger amount than the balance remaining on your current mortgage. If you've had your current mortgage loan for a long time and/or have a mortgage loan whose interest rate is high, you may be able to do this without increasing your monthly payment.
Consolidating Your Debt
Do you have other debt, perhaps with a high interest rate, that you want to consolidate? If you have the home equity for it, taking care of other high interest debt (like credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars each month.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while beefing up your equity more quickly? Consider refinancing to a shorterterm loan, often a 15-year mortgage loan. You will be paying less interest and growing your equity more quickly, although your payments will likely be more than they were. However, if you've had your existing thirty year mortgage for a long time and the remaining balance is relatively low, you may be do this without raising your monthly payment — it's even possible to save! To help you determine your options and the numerous benefits in refinancing, please contact us at (321) 777-7277. We are here for you.
Curious about refinancing your home? Call us at (321) 777-7277.