Which Refinancing Loan Program is Best for You?
The huge number of refinance options available to borrowers is truly breathtaking. Contact us at 561-395-4264 and we'll help you qualify for the perfect refinance loan to fit your needs. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Making Your Payments Lower
Are getting reduced monthly payments and a better rate your main reasons for refinancing? If so, the best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage loan, even when interest rates rise. If you plan to live in your home for at least five more years, a fixed-rate loan may be an especially good choice for you. However, if you do see yourself selling your home within several years, an ARM with a small initial rate could be the ideal way to reduce your monthly payment.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? Your home needs renovating; your son has gone to college and needs tuition; or you are taking your family on a cruise. In this case, you'll want to get a loan above the remaining balance of your present mortgage loan.With this goal, you will need You might not have an increase in your mortgage payemnt, however, if you've had your existing loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to pull out some of your equity to consolidate additional debt? Good plan! If you have enough home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of money every month.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off faster, while building up your equity more quickly? In that case, you want to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. Although your mortgage payment amount will usually be more, you can save on interest; so your equity amount will build up faster. On the other hand, if your existing long-term mortgage loan has a small balance remaining, and was closed a while ago, you might be able to make the change without paying more each month. To help you understand your options and the numerous 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 your home? Call us at 561-395-4264.