Selecting a Refinancing Program
When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than borrowers! We can guide you to choose the refinance loan program that can fit your financial situation the best. Contact us at 561-395-4264 to get things started. In order to review your options, you will need to think about your goals for the refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, the best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage loan, even when interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed-rate mortgage can especially be a great loan option. However, if you can see yourself selling your home in the near future, an ARM mortgage with a small initial rate may be the ideal way to lower your monthly payment.
Getting Out some Cash
Are you planning to cash out some of your equity with your refinance? Maybe you're going on a much needed vacation; you have to pay college tuition for your child; or you plan to renovate your home. So you need to get a loan higher than the remaining balance on your present mortgage.In this case, you want You might not have an increase in your mortgage payemnt, however, if you've had your current mortgage loan for a long time, and/or your interest rate is high.
Do you hold other debt, maybe with a high interest rate, that you need to consolidate? If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars in your monthly budget.
Paying it off Faster
Do you want to build up home equity more quickly, and have your mortgage paid off sooner? If this is your plan, the refinance loan can move you to a mortgage loan program with a shorter term, such as a 15 year loan. Your mortgage payments will probably be more than they were with your long-term loan, but the pay-off is: that you will pay substantially less interest and can build up equity more quickly. However, if you've held your current thirty year mortgage loan for a long time and the loan balance is somewhat low, you could be able to do this without raising your monthly payment — you could even be able to save! To help you determine your options and the multiple benefits of refinancing, please call us at 561-395-4264. We are here for you.
Want to know more about refinancing your home? Call us at 561-395-4264.