Which Refinancing Loan Program is Right for You?
There aren't as many loan options as there are borrowers, but at times it feels like it! Call us at 561-395-4264 and we will match you with the refinance program that is best for your needs. What are your goals for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan may be a wise choice for you. Maybe you currently have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even when rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you set that low rate for the life of your mortgage. If you expect to live in your home for at least five more years, a fixed-rate loan may be a particulary good choice for you. However, an ARM with a initial low payment could be a better way to lower your mortgage payments if you plan on moving in the near future.
Refinancing to Cash Out
Is "cashing out" your primary purpose for your refinance? It could be you need to make home improvements, pay your child's college tuition bill, or take a cruise. In this case, you'll need to look for a loan higher than the balance remaining on your current mortgage loan.So you will You will be looking for a loan for a bigger amount than the current balance on your existing mortgage in that case. However, if your mortgage rate is currently high and you've had it for quite a few years, you could be able to reach your goals without making your monthly payments bigger.
Do you want to cash out some of your equity to consolidate additional debt? Excellent idea! If you have a fair amount of home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash each month.
Building up Equity Faster
Are you hoping to fatten up your home equity faster, and get your mortgage paid off sooner? If this is your goal, the refinance loan can switch you to a mortgage loan program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your home equity faster, although your payments will generally be bigger than you have been paying. But, you may be able to make the change without much increase in your monthly mortgage payment if your long term loan was closed a while back, and the balance remaining is small. You may even pay less! To help you determine your options and the many benefits of refinancing, please contact us at 561-395-4264. We are here for you.
Curious about refinancing your home? Call us: 561-395-4264.