Refinancing: Which Program is for You?
There aren't as many loan program choices as there are borrowers, but sometimes it seems like it! We can help you choose the refinance loan program that will fit your financial situation the best. Contact us at 561-475-2281 to begin the process. What are your goals for your refinance loan? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Are getting lower mortgage payments and a better rate your main reasons for refinancing? In that case, the best choice may be a low fixed-rate loan. Perhaps you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate varies. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your loan, even if interest rates rise. If you are not expecting to sell your home in the near future (about five years), a fixed-rate mortgage can especially be a great choice. However, an ARM with a low intitial payment could be a wiser way to lower your mortgage payments if you plan on moving within the near future.
Getting Out some Cash
Is "cashing out" your primary purpose for refinancing? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. Then you'll want to qualify for a loan above the remaining balance of your present mortgage loan.Then you'll need You might not increase your mortgage payemnt, however, if you have had your current mortgage loan for a number of years, and/or your interest rate is high.
Do you hold other debt, maybe with high interest, that you'd like to consolidate? If you have built up some equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a chunk of money each month.
Switching to a Shorter Term Loan
Do you hope to build up home equity more quickly, and pay off your mortgage faster? Then, you'll need to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. Your monthly payments will likely be higher than with the longer term loan, but the pay-off is: that you will pay quite a bit less interest and can build up equity more quickly. However, if you have had your existing thirty year mortgage for a number of years and the remaining balance is relatively low, you could be do this without raising your mortgage payment — you could 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 can help you reach your goals!
Want to know more about refinancing? Call us at 561-475-2281.