Which Refinancing Loan Program is Best for You?
There aren't as many loan programs as there are borrowers, but at times it feels like it! Contact us at 561-475-2281 and we can help you qualify for the best refinance loan program to fit your financial situation. There are some general questions to ask yourself as you review your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best choice may be a low fixed-rate loan. Maybe you are presently in a mortgage with a high, fixed interest rate, or a loan with 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 term of the loan, even if interest rates rise. If you are not planning a move in the near future (about five years), a fixed-rate mortgage can particularly be a wise loan option. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate to get lower monthly payments.
Is your refinance goal mainly to "cash out" some home equity? Perhaps you're planning a special vacation; you need to pay college tuition for your child; or you plan to renovate your home. In this case, you will need to apply for a loan higher than the remaining balance of your existing mortgage.So you want to find a loan program for a higher number than the remaining balance on your present mortgage. If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Do you have other debt, maybe with high interest, that you want to consolidate? If you have the equity in your home to make it work, paying off other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars each month.
Building up Equity Faster
Are you hoping to fatten up your home equity faster, and pay off your mortgage more quickly? You should consider refinancing to a short-term loan, such as a 15-year mortgage loan. You will be paying less interest and increasing your equity more quickly, although your monthly payments will likely be bigger than you were paying. But, you may be able to make the change without much increase in your monthly payment if your long term mortgage was closed a while ago, and the balance remaining is low. You could even make it lower! To help you understand your options and the multiple benefits of refinancing, please call us at 561-475-2281. We will help you reach your goals!
Curious about refinancing your home? Give us a call at 561-475-2281.