Refinancing: Which Program is for You?
Although it seems like it at times, there are not as many loan programs as there are borrowers! Contact us at 561-475-2281 and we can match you with the loan program that best fits you. What are your reasons for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are getting better monthly payments and a better rate your main refinance goals? In that case, a good choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when rates come up later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set the low interest rate for the term of your mortgage. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can particularly be a good option. On the other hand, if you can see yourself selling your home in the near future, an ARM mortgage with a low initial rate could be the ideal way to reduce your monthly payment.
Getting Out some Cash
Are you refinancing mainly to pull out some home equity for an infusion of cash? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you want to find a loan higher than the remaining balance of your current mortgage loan.Then you'll want However, if your loan interest rate is high now and you have held it for a long time, you may be able to accomplish your goals without an increase in your mortgage payment.
Do you have other debt, perhaps with a high interest rate, that you need to consolidate? If you hold some debt with high interest (such as credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have enough home equity.
Paying it off Faster
Do you want to build up equity quicker, and have your mortgage paid off faster? Then, you'll need to look into refinancing to a short term mortgage - like a fifteen-year mortgage loan. The payments will likely be more than with a long-term mortgage, but in exchange, you will pay substantially less interest and can build up equity quicker. However, if you've had your existing 30 year loan for a long time and the loan balance is somewhat low, you might be able to do this without increasing your monthly mortgage payment — you may even be able to save! To help you figure out your options and the multiple benefits in refinancing, please call us at 561-475-2281. We can help you reach your goals!
Want to know more about refinancing your home? Call us: 561-475-2281.