Selecting a Refinancing Loan
When you are overwhelmed with all the choices, it may seem like there are even more refinance programs than applicants! Contact us at 561-395-4264 and we can match you with the loan program that fits you best. What do you hope to achieve with refinancing? Considering in mind the following will help you narrow your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, a good option might be a low fixed-rate loan. Maybe you are presently 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 qualify for a mortgage with a fixed rate, you set the low rate for the life of your mortgage. This can be especially a wise choice if you don't think you'll be selling your home within the next five years or so. However, an ARM with a low intitial payment may be a better way to lower your mortgage payments if you expect to move in the next few years.
Refinancing to Cash Out
Is your refinance goal primarily to pull out some of your home equity for an infusion of cash? Your home needs improvements; your daughter has gone to college and needs tuition money; or you are planning a special vacation. Then you'll want to apply for a loan higher than the remaining balance of your existing mortgage.So you'll You will be looking for a loan for a higher amount than the remaining balance on your present mortgage in that case. However, if your mortgage rate is currently high and you've held it for quite a few years, you may be able to accomplish your goals without a rise in your mortgage payment.
Do you hold other debt, perhaps with high interest, that you need to consolidate? If you have a fair amount of equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a lot of cash every month.
Getting a Shorter Term Loan
Are you planning to fatten up your equity faster, and pay your mortgage loan off more quickly? Then, you'll want to find out about refinancing to a short term mortgage - for example, a fifteen-year loan. Your mortgage payments will probably be higher than they were with your long-term mortgage loan, but in exchange, that you will pay quite a bit less interest and will build up equity more quickly. But, you may be able to make the change without a bigger monthly mortgage payment if your longer term loan was closed a while back, and the balance remaining is small. You may even make it lower! To help you determine your options and the many benefits of refinancing, please contact us at 561-395-4264. We will help you reach your goals!
Want to know more about refinancing? Give us a call: 561-395-4264.