Which Refinancing Loan Program is Right for You?
When you are overwhelmed with all the choices, it may seem like there are even more loan programs than borrowers! We can guide you to find the refinance program that will fit your financial situation the best. Call us at 954-375-7774 to begin the process. There are several things to have in mind as you consider the options.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — with which the rate of interest can vary. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the loan, even when interest rates rise. If you are planning to live in your home for at least five more years, a loan with a fixed rate may be a particulary good fit for you. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced payments.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? Perhaps you want to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. With this in mind, you need to get a loan above the balance remaining of your existing mortgage loan.So you want to qualify for a loan program for a bigger amount than the remaining balance on your existing mortgage loan. However, if your mortgage rate is currently high and you have held it for quite a few years, you may be able to achieve your goals without making your mortgage payments higher.
Maybe you hope to cash out some of the home equity (cash out) to put toward other debt. If you have the home equity for it, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars a month.
Building up Equity Faster
Are you wanting to fatten up your equity faster, and pay off your mortgage sooner? Then, you'll need to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. Your payments will likely be more than with a long-term loan, but in exchange, that you will pay substantially less interest and will build up equity quicker. Conversely, if your existing long-term loan has a low balance remaining, and was closed a while ago, you may be able to make the change without paying more each month. To help you determine your options and the multiple benefits of refinancing, please contact us at 954-375-7774. We are here to help you reach your goals!
Curious about refinancing? Call us at 954-375-7774.