Which Refinancing Option is Right for You?
There are a huge number of refinancing programs available to borrowers. We can help you select the loan program that can fit your needs the best. Call us at 561-475-2281 to begin the process. There are some general questions to ask yourself as you review the options.
Reducing Your Monthly Payments
Are getting reduced payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even if rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you set that low rate for the life of your loan. This is particularly a good option if you don't think you will sell your home within the next 5 years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get lower mortgage payments.
Getting Out some Cash
Are you planning to cash out some of your equity in your refinance? Your house needs improvements; your son has gone to college and needs tuition money; or you have a special family vacation planned. In this case, you will need to get a loan higher than the remaining balance of your existing mortgage.So you will want to need to qualify for a loan for a higher amount than the remaining balance on your present mortgage loan. If you've had your current mortgage for quite a while and/or have a mortgage loan with a high interest rate, you may be able to do this without making your mortgage payment higher.
Do you want to cash out a portion of your home equity to consolidate additional debt? Great idea! If you hold any higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off 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 your loan off more quickly, while beefing up your home equity quicker? If this is your wish, your refinance mortgage can switch you to a mortgage loan program with a short, such as a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your monthly payments will usually be bigger than you were paying. However, if you've held your current thirty-year loan for a long time and the loan balance is relatively low, you could be do this without increasing your mortgage payment — you might 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.
Curious about refinancing your home? Give us a call at 561-475-2281.