Refinancing: Which Loan Program is for You?

There are a huge number of refinancing programs available to borrowers. Contact us at 561-395-4264 and we'll work with you to qualify you for the right refinance loan program to fit your financial needs. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? If so, your best choice may be a low fixed-rate loan. Maybe you are now in a loan with a high, fixed interest rate, or a mortgage in which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low rate for the term of your loan. If you plan to stay in your home for about five more years, a fixed rate mortgage may be an especially good option for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower mortgage payments.

Cashing Out

Are you planning to cash out some of your home equity with your refinance? Perhaps you need to pay for home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. Then you need to apply for a loan for more than the remaining balance on your existing mortgage loan.In this case, you'll want to need to find a loan for a bigger number than the balance remaining on your existing mortgage loan. However, if your interest rate is high now and you've had it for a long time, you may be able to accomplish your goals without making your mortgage payments higher.

Debt Consolidation

Perhaps you hope to cash out some of the equity (cash out) to put toward other debt. If you hold some debt with steep interest (like credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have enough home equity.

Building up Equity Faster

Are you wanting to fatten up your home equity faster, and pay off your mortgage sooner? You should consider refinancing with a shorterterm loan, often a 15-year mortgage. You will be paying less interest and growing your equity more quickly, although your monthly payments will generally be higher than you were paying. But, you could be able to switch without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while back, and the remaining balance is low. You could even make it lower! To help you figure out your options and the many benefits of refinancing, please call us at 561-395-4264. We are here to help you reach your goals!

Curious about refinancing? Call us at 561-395-4264.

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Alternative Mortgage Group

80 SW 14 Ave
Boca Raton, FL 33486