Refinancing: Which Loan Program is 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 can match you with the refinance program that fits you best. There are several things to bear in mind as you review the options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the best option for you. Maybe you are now in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage loan, even if interest rates rise. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a great loan 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.
Getting Out some Cash
Are you wanting to cash out some of your home equity with your refinance? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you plan to renovate your home. With this in mind, you'll want to find a loan above the remaining balance on your current mortgage.Then you need If you've had your existing mortgage loan for a long time and/or have a loan whose interest rate is high, you may be able to do this without making your mortgage payment bigger.
Do you hold other debt, maybe with a high interest rate, that you want to consolidate? If you have enough home equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a lot of money each month.
Building up Equity Faster
Are you wanting to fatten your equity faster, and get your mortgage paid off more quickly? You should consider refinancing to a shorterterm loan, often a 15-year mortgage. Even though your monthly payments will likely be more, you will save on interest; so your equity amount will build up faster. However, if you have held your existing thirty year mortgage loan for a long time and the loan balance is somewhat low, you might be able to do this without raising your monthly payment — you may even be able to save! To help you understand your options and the numerous benefits in refinancing, please contact us at (321) 777-7277. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call: (321) 777-7277.