Refinancing: Which Option is for You?
There are not as many refinance loan options as there are borrowers, but it feels like it at times! Call us at 954-375-7774 and we'll help you qualify for the perfect loan program to fit your financial needs. There are some general questions to ask yourself while you consider your choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage loan, even if interest rates rise. If you are expecting to stay in your home for at least five more years, a fixed rate mortgage may be an especially good choice for you. However, if you can see yourself selling your home within several years, an ARM mortgage with a low initial rate could be the best way to reduce your monthly payment.
Refinancing to Cash Out
Are you hoping to cash out some of your equity in your refinance? It could be you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. Then you'll need to get a loan for more than the balance remaining of your current mortgage loan.So you want to find a loan for a higher number than the remaining balance on your existing mortgage loan. You might not have an increase in your mortgage payemnt, though, if you've had your current mortgage for a while, and/or your loan interest rate is high.
Maybe you want to pull out a portion of the equity in your home (cash out) to use toward other debt. If you have built up some equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might help save you a chunk of money each month.
Getting a Shorter Term Loan
Do you hope to build up equity quicker, and pay off your mortgage sooner? If this is your hope, the refinance loan can change you to a mortgage program with a short, like a 15 year loan. You will be paying less interest and growing your equity more quickly, even though your monthly payments will likely be higher than you have been paying. But, you might be able to make the change without much increase in your monthly payment if your longer term loan was closed a while ago, and the remaining balance is somewhat low. You may even make it lower! To help you understand your options and the multiple benefits of refinancing, please call us at 954-375-7774. We are here for you.
Want to know more about refinancing your home? Give us a call: 954-375-7774.