Refinancing: Which Program is for You?
Although it may seem like it sometimes, there aren't as many loan options as there are borrowers! Contact us at 561-475-2281 and we will help you qualify for the right refinance loan program for your needs. What are your goals for refinancing? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you are expecting to live in your home for at least five more years, a fixed rate loan may be a particulary good fit for you. On the other hand, if you can see yourself moving in the near future, an ARM with a low initial rate could be the ideal way to lower your monthly payments.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? Your house needs new carpet; your son has been accepted to college and needs tuition money; or you are taking your family on a cruise. Then you'll want to find a loan above the remaining balance of your present mortgage loan.So you'll need However, if your loan interest rate is currently high and you have held it for quite a few years, you could be able to achieve your goals without making your mortgage payments increase.
Do you want to cash out some of your equity to consolidate additional debt? Great idea! If you own some debt with high interest (like credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while beefing up your equity more quickly? If this is your plan, the refinance can switch you to a loan program with a short, for example: a 15 year loan. You will be paying less interest and increasing your home equity faster, even though your monthly payments will generally be more than they were. However, if you've held your current 30-year loan for a long time and the loan balance is somewhat low, you could be do this without raising your monthly mortgage payment — you may even be able to save! To help you determine your options and the multiple benefits of refinancing, please contact us at 561-475-2281. We are here for you.
Want to know more about refinancing your home? Give us a call at 561-475-2281.