Which Refinancing Option is Right for You?
When you are overwhelmed with all the options, it may seem as if there are even more loan programs than applicants! We can help you find the refinance loan program that can fit your needs the best. Call us at 954-375-7774 to begin the process. surveying your options, you need to consider what you want to achieve with the refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a wise option for you. Maybe you currently hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even as interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you expect to live in your home for at least five more years, a loan with a fixed rate may be an especially good option for you. On the other hand, if you can see yourself moving before too long, an ARM mortgage with a small initial rate may be the ideal way to lower your monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary reason 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. So you want to look for a loan higher than the remaining balance of your current mortgage.So you'll You will be looking for a loan for a higher amount than the balance remaining with your current mortgage loan in that case. You may not have an increase in your monthly payemnt, however, if you have had your current loan for a while, and/or your loan interest rate is high.
Do you have other debt, maybe with a high interest rate, that you need to consolidate? If you hold some debt with steep interest (like credit cards or car loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of equity.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your equity faster? Then, you need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage program. Your payments will likely be more than they were with a long-term mortgage, but in exchange, you will pay substantially less interest and will build up equity more quickly. But, you may be able to switch without a higher monthly payment if your long term mortgage loan was closed a while ago, and the remaining balance is small. You could even make it lower! To help you understand your options and the many benefits in refinancing, please call us at 954-375-7774. We can help you reach your goals!
Want to know more about refinancing? Give us a call at 954-375-7774.