Which Refinancing Program is Best for You?
There are an enormous number of refinancing programs available to borrowers. Call us at 561-475-2281 and we will match you with the loan program that is best for your needs. There are several questions to ask yourself while you consider the choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan could be a good choice for you. Maybe you are now in a loan with a high, fixed interest rate, or a loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. This kind of loan is especially a wise idea if you don't think you will move within the next 5 years or so. However, an ARM with a initial low payment could be a wiser way to lower your mortgage payments if you plan on moving within the near future.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? It could be you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are updating your kitchen. Then you'll want to find a loan for more than the balance remaining on your existing mortgage.With this goal, you want to qualify for a loan program for a bigger amount than the remaining balance on your present mortgage loan. However, if your mortgage rate is currently high and you've held it for a long time, you may be able to accomplish your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you want to pull out a portion of your home equity to consolidate additional debt? Excellent idea! If you have a fair amount of home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of money each month.
Paying it off Faster
Do you want to build up equity quicker, and have your mortgage paid off faster? If this is your wish, the refinance mortgage can move you to a mortgage program with a shorter term, like a 15 year loan. Your monthly payments will likely be more than they were with a longer term loan, but in exchange, you will pay quite a bit less interest and can build up equity quicker. However, if you've had your existing thirty year mortgage loan for a long time and the remaining balance is relatively low, you might be able to do this without raising your monthly payment — it's even possible to save! To help you figure out your options and the many benefits in refinancing, please call us at 561-475-2281. We can help you reach your goals!
Curious about refinancing your home? Give us a call at 561-475-2281.