Which Refinancing Loan Program is Right for You?
When you are overwhelmed with all the choices, it may seem as if there are even more loan programs than applicants! Contact us at 561-395-4264 and we can match you with the refinance program that best fits you. There are several questions to ask yourself while you consider your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Maybe you are presently in a mortgage with a high, fixed interest rate, or a loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. This can be particularly a wise option if you don't think you'll be moving within the next five years or so. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Are you refinancing primarily to pull out some of your home equity for an infusion of cash? It could be you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. So you will want to get a loan for more than the balance remaining on your present mortgage.In this case, you want to find a loan for a bigger amount than the balance remaining on your present mortgage. If you've had your current mortgage loan for quite a while and/or have a mortgage loan with high interest, you might\could be able to do this without increasing your monthly payment.
Maybe you want to cash out a portion of the equity (cash out) to use toward other debt. If you have built up some equity, paying off other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a lot of money each month.
Getting a Shorter Term Loan
Are you hoping to fatten your home equity faster, and pay your mortgage loan off more quickly? You should consider refinancing to a short-term loan, such as a 15-year mortgage loan. You will be paying less interest and growing your equity faster, although your monthly payments will likely be higher than you have been paying. Conversely, if your existing longer term mortgage has a low remaining balance, and was closed a while ago, you may be able to make the switch without paying more each month. To help you understand your options and the multiple benefits of refinancing, please call us at 561-395-4264. We will help you reach your goals!
Curious about refinancing your home? Call us at 561-395-4264.