Which Refinancing Program is Right for You?
There are not as many refinance loan options as there are applicants, but sometimes it seems like it! We can help you find the refinance loan program that can fit your needs the best. Contact us at 954-375-7774 to get things started. There are several questions to ask yourself while you consider the options.
Making Your Payments Lower
Are getting lower payments and a better rate your main reasons for refinancing? In that case, a good option may be a low fixed-rate loan. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise choice. However, an ARM with a initial low payment could be a smarter way to lower your payments if you expect to move in the near future.
Is "cashing out" your primary purpose for your refinance? Your home needs improvements; your daughter has gone to college and needs tuition; or you are planning a special vacation. Then you'll need to qualify for a loan higher than the balance remaining of your current mortgage.Then you want to qualify for a loan for a higher amount than the remaining balance on your existing mortgage. 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 making your mortgage payments bigger.
Consolidating Your Debt
Maybe you hope to cash out some equity in your home (cash out) to use toward other debt. If you hold any debt with steep interest (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough home equity.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while building up your equity faster? You should consider refinancing to a short-term loan, like a 15-year mortgage. Your payments will probably be higher than they were with a longer term mortgage loan, but the pay-off is: you will pay quite a bit less interest and can build up equity more quickly. But, you could be able to switch without much increase in your monthly payment if your long term mortgage loan was closed a while ago, and the remaining balance is low. You could even pay less! To help you understand your options and the many benefits of refinancing, please contact us at 954-375-7774. We can help you reach your goals!
Want to know more about refinancing? Give us a call: 954-375-7774.