Which Refinancing Program is Best for You?
There are not as many refinance loan programs as there are applicants, but at times it seems like it! We can guide you to locate the refinance program that can fit your situation the best. Call us at 561-395-4264 to get started. There are some general questions to ask yourself as you review your options.
Lowering Your Payments
Are achieving reduced payments and an improved rate your main reasons for refinancing? In that case, your best option may be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). 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. A fixed-rate mortgage can be particularly 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 could be a smarter way to lower your monthly payments if you expect to move within the near future.
Refinancing to Cash Out
Are you refinancing primarily to pull out some of your home equity for an infusion of cash? Your house needs updating; your son has gone to University and needs tuition money; or you are taking your family on a cruise. In this case, you'll need to get a loan for more than the balance remaining of your present mortgage loan.Then you want to qualify for a loan program for a bigger number than the remaining balance on your existing mortgage. If you've had your existing mortgage for quite a while and/or have a mortgage whose interest rate is high, you may be able to do this without increasing your mortgage payment.
Do you want to pull out some equity to consolidate other debt? Great plan! If you have a fair amount of home equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of money every month.
Paying it off Sooner
Do you need to build up equity quicker, and have your mortgage paid off sooner? You should consider refinancing with a shorterterm loan, often a 15-year mortgage loan. The mortgage payments will likely be more than they were with your longer term mortgage loan, but the pay-off is: you will pay substantially less interest and can build up equity more quickly. But, you could be able to switch without much increase in your monthly payment if your longer term mortgage loan was closed a while ago, and the balance remaining is low. You could even make it lower! To help you understand your options and the multiple benefits in refinancing, please call us at 561-395-4264. We are here for you.
Want to know more about refinancing your home? Call us at 561-395-4264.