Which Refinancing Option is Right for You?
There aren't as many loan program choices as there are borrowers, but it seems like it at times! We can guide you to select the refinance loan program that can fit your needs the best. Contact us at (321) 777-7277 to begin the process. In order to review your choices, you will need to determine your goals for your refinance.
Lowering Your Payments
Are achieving lower mortgage payments and a lower rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. Maybe you now hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest varies. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even if interest rates rise. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can especially be a great option. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Is your refinance goal mainly to "cash out" some home equity? Maybe you need to pay for home improvements, take care of your college kid's tuition, or take a cruise. Then you will need to find a loan for more than the balance remaining of your present mortgage loan.Then you'll You'll need to qualify for a loan for more than the remaining balance with your present mortgage loan in this case. If you've had your current mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Consolidating Your Debt
Perhaps you'd like to pull out some of the home equity (cash out) to put toward other debt. If you have built up some equity, taking care of other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) might help save you a chunk of cash every month.
Building up Equity Faster
Are you dreaming of paying off your loan faster, while beefing up your home equity more quickly? If this is your plan, your refinance loan can switch you to a mortgage loan program with a shorter term, such as a 15 year loan. Your mortgage payments will probably be higher than they were with the longer term loan, but in exchange, that you will pay substantially less interest and can build up equity quicker. Conversely, if your existing longer term loan has a small remaining balance, and was closed a while ago, you may be able to make the change without paying more each month. To help you determine your options and the many 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.