Which Refinancing Loan Program is Best for You?
The number of refinance options available is truly breathtaking. We can guide you to locate the refinance program that can fit your financial situation the best. Call us at 561-475-2281 to get started. There are some general questions to ask yourself as you review the choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan might be a good choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if rates get higher later, unlike with your ARM, when you get a fixed-rate mortgage, you set the low interest rate for the term of your loan. A fixed-rate mortgage is particularly a good idea if you don't think you'll be selling your home within the next 5 years or so. However, an ARM with a low intitial payment could be a wiser way to lower your mortgage payments if you plan on moving in the next few years.
Getting Out some Cash
Is "cashing out" your main reason for your refinance? It could be you need to make home improvements, pay your child's college tuition bill, or go on a special family vacation. With this in mind, you will need to find a loan higher than the remaining balance on your current mortgage loan.Then you will want to find a loan for a bigger number than the balance remaining on your current mortgage. If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Maybe you'd like to pull out some home equity (cash out) to use toward other debt. If you hold some debt with steep interest (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of equity.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your equity quicker? If this is your hope, your refinance can move you to a loan program with a shorter term, for example: a 15 year loan. The mortgage payments will likely be higher than they were with your longer term mortgage, but in exchange, that you will pay substantially less interest and will build up equity more quickly. However, if you've held your current 30 year mortgage loan for a long time and the loan balance is somewhat low, you might be do this without raising your monthly mortgage payment — it's even possible to save! To help you figure out your options and the many benefits in refinancing, please contact us at 561-475-2281. We would love to help you reach your goals!
Want to know more about refinancing? Call us: 561-475-2281.