Refinancing: Which Option is for You?
The number of refinance options available can be overwhelming. Call us at 561-475-2281 and we can match you with the refinance loan program that fits you best. What are your goals for your refinance loan? Keeping in mind the information below will help you begin your decision process.
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 hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Even as interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise option. However, if you can see yourself selling your home within several years, an ARM with a low initial rate may be the ideal way to bring down your monthly payment.
Refinancing to Cash Out
Is "cashing out" your primary reason for refinancing? It could be you need to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. Then you want to apply for a loan higher than the remaining balance of your present mortgage loan.In that case, you want to find a loan for a higher amount than the remaining balance on your existing mortgage loan. You may not have an increase in your mortgage payemnt, however, 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 have other debt, perhaps with a higher interest rate, that you need to consolidate? If you have the equity in your home for it, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan faster, while building up your home equity faster? If this is your goal, the refinance loan can move you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and growing your home equity faster, although your payments will generally be more than you were paying. Conversely, if your current long-term mortgage loan has a low remaining balance, and was closed a while ago, you could be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please contact us at 561-475-2281. We are here for you.
Curious about refinancing? Call us: 561-475-2281.