Refinancing: Which Option is for You?
There are not as many loan options as there are borrowers, but at times it seems like it! Contact us at 561-475-2281 and we will help you qualify for the right loan program to fit your needs. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving lower mortgage payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be the ideal option for you. Maybe you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are planning to stay in your home for about five more years, a fixed-rate loan may be a particulary good choice for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced payments.
Is "cashing out" your main purpose for refinancing? Perhaps you're going on a much needed vacation; you need to pay college tuition for your child; or you are planning some home improvements. With this in mind, you'll want to apply for a loan higher than the remaining balance on your current mortgage.Then you'll want If you've had your current mortgage for a number of years and/or have a mortgage loan whose interest rate is high, you may be able to do this without making your monthly payment bigger.
Perhaps you hope to cash out some equity (cash out) to put toward other debt. If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars monthly.
Switching to a Shorter Term Loan
Do you plan to build up equity more quickly, and have your mortgage paid off sooner? You should consider refinancing to a short-term loan, like a 15-year mortgage loan. Even though your mortgage payment amount will probably be increased, you will save on interest; so your equity will build up faster. Conversely, if your existing longer term mortgage has a small balance remaining, and was closed a while ago, you may even be able to make the change without paying more each month. To help you understand your options and the multiple benefits in refinancing, please call us at 561-475-2281. We are here for you.
Want to know more about refinancing? Give us a call: 561-475-2281.