Selecting a Refinancing Program
There are a huge number of refinancing options available to borrowers. Contact us at 561-395-4264 and we can match you with the refinance loan program that is ideal for your needs. There are several questions to ask yourself as you review the options.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then a good choice may be a low fixed-rate loan. Maybe you now hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even when rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you set the low interest rate for the life of your loan. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can especially be a good option. On the other hand, if you can see yourself selling your home in the near future, an ARM with a low initial rate may be the best way to bring down your monthly payment.
Getting Out some Cash
Is "cashing out" your primary purpose for refinancing? Your home needs renovating; your daughter has gone to University and needs tuition; or you are taking your family on a cruise. With this in mind, you want to get a loan above the balance remaining of your present mortgage loan.So you'll want to need to qualify for a loan program for a higher amount than the remaining balance on your existing mortgage loan. However, if your loan interest rate is high now and you've had it for quite a few years, you could be able to reach your goals without making your monthly payments higher.
Do you want to pull out a portion of your home equity to consolidate other debt? Good plan! If you hold some debt with higher interest (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you wanting to fatten up your equity faster, and pay off your mortgage more quickly? In that case, you need to find out about refinancing to a short term mortgage loan - such as a fifteen-year loan. You will be paying less interest and growing your home equity more quickly, although your mortgage payments will likely be more than they were. But, you could be able to make the change without a higher monthly payment if your longer term mortgage loan was closed a while back, and the remaining balance is low. You may even pay less! To help you figure out your options and the multiple benefits of refinancing, please call us at 561-395-4264. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us at 561-395-4264.