Selecting a Refinancing Loan
There are a huge number of refinancing options available to borrowers. Call us at (321) 777-7277 and we'll work with you to qualify you for the perfect refinance loan program to fit your financial situation. There are some general questions to ask yourself as you consider the choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, your best choice could be a low fixed-rate loan. Perhaps you currently have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even if interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. If you expect to live in your home for at least five more years, a fixed rate mortgage may be an especially good option for you. However, an ARM with a low intitial payment may be a wiser way to reduce your payments if you expect to move in the near future.
Getting Out some Cash
Is "cashing out" your main reason for refinancing? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. Then you will want to look for a loan higher than the remaining balance of your present mortgage loan.In this case, you will want You may not increase your mortgage payemnt, however, if you've had your existing loan for a number of years, and/or your interest rate is high.
Do you hold other debt, maybe with a high interest rate, that you need to consolidate? If you have the equity in your home for it, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars a month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your equity more quickly? In that case, you need to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. Your mortgage payments will probably be higher than they were with the longer term mortgage loan, but in exchange, that you will pay substantially less interest and can build up equity quicker. On the other hand, if your current long-term mortgage loan has a small remaining balance, and was closed a while ago, you might 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 to help you reach your goals!
Want to know more about refinancing your home? Call us: (321) 777-7277.