Which Refinancing Option is Right for You?
There are an enormous number of refinancing programs available to borrowers. Contact us at 561-395-4264 and we'll help you qualify for the right refinance program to fit your financial needs. There are several things to bear in mind as you consider the choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, the best choice could be a low fixed-rate loan. Perhaps you now hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — with which the interest rate can vary. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage, even when interest rates rise. If you are planning to live in your home for about five more years, a fixed rate loan may be a particulary good choice for you. However, if you do see yourself moving in the near future, an ARM mortgage with a small initial rate may be the best way to bring down your monthly payment.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? Perhaps you need to pay for home improvements, pay your child's college tuition bill, or take a cruise. So you will want to qualify for a loan for more than the remaining balance on your current mortgage.With this goal, you'll need However, if your interest rate is currently high and you have held it for quite a few years, you could be able to accomplish your goals without making your monthly payments bigger.
Consolidating Your Debt
Perhaps you hope to pull out a portion of the equity in your home (cash out) to put toward other debt. If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars in your monthly budget.
Building up Equity More Quickly
Are you planning to fatten your equity faster, and pay off your mortgage loan sooner? You should consider refinancing to a short-term loan, like a 15-year mortgage loan. You will be paying less interest and growing your equity faster, although your monthly payments will usually be more than they were. But, you could be able to make the change without much increase in your monthly payment if your longer term mortgage loan was closed a while ago, and the remaining balance is small. You may even pay less! To help you understand your options and the multiple benefits in refinancing, please contact us at 561-395-4264. We would love to help you reach your goals!
Want to know more about refinancing? Call us: 561-395-4264.