Which Refinancing Loan Program is Right for You?
When you are overwhelmed with all the choices, it may seem like there are even more refinance programs than applicants! Call us at 561-475-2281 and we will help you qualify for the right refinance program to fit your situation. In the interest of looking at your options, you can think about your goals for the refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then a good option might be a low fixed-rate loan. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a good choice. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? Your house needs improvements; your daughter has been accepted to college and needs tuition money; or you are taking your family on a cruise. In this case, you need to look for a loan for more than the balance remaining of your existing mortgage loan.So you You'll want to apply for a loan for a higher amount than the balance remaining of your existing mortgage in that case. However, if your mortgage rate is currently high and you have held it for quite a few years, you may be able to reach your goals without making your mortgage payments rise.
Maybe you'd like to pull out some of the equity (cash out) to use toward other debt. If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars monthly.
Paying it off Sooner
Do you need to build up equity more quickly, and pay off your mortgage faster? You should consider refinancing to a shorterterm loan, like a 15-year mortgage. Although your monthly payments will likely be more, you will save on interest; so your equity will build up faster. However, if you have had your current 30-year loan for a number of years and the loan balance is rather low, you may be able to do this without increasing your monthly mortgage payment — you may even be able to save! To help you figure out your options and the numerous benefits in refinancing, please call us at 561-475-2281. We are here for you.
Want to know more about refinancing? Give us a call at 561-475-2281.