Refinancing: Which Option is for You?
There aren't as many refinance loan programs as there are borrowers, but at times it seems like it! Contact us at 561-395-4264 and we can match you with the loan program that is best for your needs. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are achieving reduced monthly payments and a lower rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low interest rate for the life of your mortgage. A fixed-rate mortgage is especially a wise choice if you don't think you'll be moving within the next 5 years or so. However, an ARM with a initial low payment may be a smarter way to reduce your mortgage payments if you plan on moving in the next few years.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. So you'll need to find a loan higher than the balance remaining of your existing mortgage.Then you will You'll be looking for a loan for more than the current balance on your present home loan in this case. You might not increase your mortgage payemnt, though, if you have had your existing mortgage for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Maybe you hope to pull out some of the home equity (cash out) to use toward other debt. If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars each month.
Paying it off Sooner
Are you wanting to fatten up your home equity faster, and pay your mortgage loan off sooner? In that case, you need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage program. You will be paying less interest and growing your home equity more quickly, even though your mortgage payments will likely be more than you were paying. However, if you have held your current 30-year mortgage loan for a long time and the loan balance is relatively low, you might be able to do this without raising your monthly payment — you could even be able to save! To help you figure out your options and the numerous benefits in refinancing, please call us at 561-395-4264. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call at 561-395-4264.