Which Refinancing Option is Best for You?
Even though it seems like it at times, there are not as many loan options as there are borrowers! We can guide you to find the refinance program that can fit your financial situation the best. Contact us at 561-475-2281 to get started. surveying your choices, you need to determine your goals for the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage, even when interest rates rise. A fixed-rate mortgage is particularly a wise choice if you don't think you'll be moving within the next five years or so. On the other hand, if you do see yourself moving before too long, an ARM mortgage with a low initial rate could be the ideal way to lower your monthly payments.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? It could be you're going on a much needed vacation; you have to pay college tuition for your child; or you are planning some home improvements. Then you'll want to get a loan above the remaining balance on your existing mortgage.With this goal, you'll want If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you may be able to do this without making your mortgage payment higher.
Do you want to cash out some of your home equity to consolidate additional debt? Great idea! If you have the equity in your home for it, taking care of other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars in your budget each month.
Building up Equity Faster
Are you dreaming of paying your loan off more quickly, while building up your equity more quickly? Then, you need to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. Your payments will likely be more than they were with a long-term loan, but in exchange, you will pay substantially less interest and will build up equity quicker. However, if you've had your existing 30 year mortgage for a number of years and the remaining balance is relatively low, you may be do this without increasing your mortgage payment — you could even be able to save! To help you determine your options and the numerous benefits of refinancing, please call us at 561-475-2281. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call: 561-475-2281.