Refinancing: Which Loan Program is for You?
Although it seems like it sometimes, there aren't as many loan programs as there are applicants! Call us at 561-395-4264 and we will match you with the loan program that is ideal for your needs. There are some general questions to ask yourself as you review the options.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan could be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans 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, even if interest rates rise. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can especially be a good choice. On the other hand, if you can see yourself moving before too long, an ARM mortgage with a low initial rate could be the ideal way to bring down your monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary purpose for refinancing? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you'll want to find a loan for more than the balance remaining of your present mortgage.Then you want to qualify for a loan program for a higher amount than the remaining balance on your present mortgage. If you've had your current mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Do you have other debt, maybe with high interest, that you want to consolidate? If you have the equity in your home to make it work, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars a month.
Building up Equity More Quickly
Are you hoping to fatten your home equity faster, and pay off your mortgage more quickly? Consider refinancing with a short-term loan, such as a 15-year mortgage loan. Your mortgage payments will probably be higher than they were with a long-term mortgage loan, but the pay-off is: you will pay considerably less interest and can build up equity quicker. On the other hand, if your current long-term mortgage loan has a small balance remaining, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you determine your options and the numerous benefits in refinancing, please contact us at 561-395-4264. We are here for you.
Want to know more about refinancing your home? Give us a call at 561-395-4264.