Selecting a Refinancing Loan
There are an enormous number of refinancing programs available to borrowers. We can guide you to choose the refinance loan program that will fit your needs the best. Call us at 561-475-2281 to get started. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a good choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even as interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. If you plan to stay in your home for at least five more years, a fixed-rate loan may be an especially good option for you. On the other hand, if you do see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate could be the best way to reduce your monthly payments.
Refinancing to Cash Out
Are you refinancing primarily to "cash out" some home equity? Your home needs renovating; your daughter has been accepted to college and needs tuition money; or you are taking your family on a cruise. In this case, you'll need to qualify for a loan higher than the balance remaining of your present mortgage loan.In that case, you will You'll be looking for a loan for a bigger amount than the balance remaining on your existing mortgage in that case. You may not have an increase in your mortgage payemnt, though, if you have had your current mortgage for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to pull out some of your equity to consolidate other debt? Great plan! If you have built up some equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a lot of money every month.
Paying it off Faster
Do you hope to build up home equity quicker, and pay off your mortgage more quickly? If this is your goal, your refinance can switch you to a mortgage program with a shorter term, such as a 15 year loan. Although your monthly payments will likely be increased, you will be paying less interest; so your equity amount will build up faster. But, you might be able to make the change without a higher monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the remaining balance is low enough. You may even make it lower! To help you determine your options and the many benefits in refinancing, please call us at 561-475-2281. We will help you reach your goals!
Want to know more about refinancing? Call us at 561-475-2281.