Which Refinancing Option is Best for You?
There aren't as many refinance loan options as there are borrowers, but sometimes it feels like it! Contact us at 561-395-4264 and we will help you qualify for the perfect refinance program to fit your situation. In the interest of looking at your choices, you need to determine your goals for your refinance.
Lowering Your Payments
Are getting better payments and an improved rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even if interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is particularly a good idea if you don't plan to sell your home within the next five years or so. However, if you do see yourself selling your home before too long, an adjustable rate mortgage with a low initial rate might be the best way to reduce your monthly payments.
Getting Out some Cash
Is your refinance goal primarily to "cash out" some home equity? It could be you need to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. With this in mind, you will want to find a loan above the remaining balance on your existing mortgage loan.Then you'll want to qualify for a loan for a higher amount than the remaining balance on your present mortgage. However, if your loan interest rate is currently high and you've held it for a long time, you could be able to achieve your goals without a rise in your mortgage payment.
Do you have other debt, maybe with higher interest, that you want to consolidate? If you have the equity in your home for it, taking care of other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars monthly.
Building up Equity More Quickly
Are you wanting to fatten your equity faster, and pay off your mortgage loan sooner? Then, you'll need to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. Your monthly payments will likely be more than they were with the long-term loan, but the pay-off is: that you will pay considerably less interest and will build up equity quicker. On the other hand, if your existing longer term mortgage has a low balance remaining, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you determine your options and the numerous benefits of refinancing, please contact us at 561-395-4264. We are here for you.
Want to know more about refinancing your home? Call us: 561-395-4264.