Refinancing: Which Option is for You?
The number of refinance options available is truly breathtaking. We can guide you to find the loan program that can fit your financial situation the best. Contact us at 561-475-2281 to get started. In the interest of looking at your choices, you need to consider what you want to achieve with the refinance.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? If so, the best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even if interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you plan to stay in your home for at least five more years, a fixed-rate loan may be a particulary good fit for you. However, an ARM with a low intitial payment may be a better way to lower your monthly payments if you plan on moving in the next few years.
Is "cashing out" your main purpose for your refinance? It could be you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you'll need to find a loan higher than the balance remaining of your current mortgage loan.So you You will be looking for a loan for a bigger amount than the current balance of your current home loan in this case. If you've had your existing mortgage for quite a while and/or have a mortgage whose interest rate is high, you may be able to do this without making your mortgage payment bigger.
Do you have other debt, maybe with a high interest rate, that you'd like to consolidate? If you have the equity in your home for it, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars monthly.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while building up your home equity quicker? Consider refinancing with a shorterterm loan, like a 15-year mortgage. The payments will probably be higher than with the longer term mortgage loan, but in exchange, you will pay considerably less interest and can build up equity quicker. On the other hand, if your existing longer term loan has a low remaining balance, and was closed a while ago, you may be able to make the move without paying more each month. To help you determine your options and the numerous benefits in refinancing, please contact us at 561-475-2281. We will help you reach your goals!
Want to know more about refinancing? Call us: 561-475-2281.