Selecting a Refinancing Loan
When you are overwhelmed with so many options, it may seem as if there are even more loan programs than borrowers! We can help you choose the refinance loan program that can fit your situation the best. Call us at 561-395-4264 to get things started. There are some general things to have in mind while you consider your choices.
Making Your Payments Lower
Are achieving reduced payments and a better rate your main reasons for refinancing? Then your best choice may be a low fixed-rate loan. Maybe you now have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low rate for the life of your mortgage. This kind of loan is particularly a good option if you aren't planning a move within the next 5 years or so. However, an ARM with a low intitial payment may be a better way to reduce your mortgage payments if you expect to move within the near future.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? It could be you're planning a special vacation; you need to pay college tuition for your child; or you are updating your kitchen. In this case, you'll need to find a loan for more than the balance remaining of your existing mortgage loan.So you'll want However, if your loan interest rate is currently high and you've held it for a long time, you could be able to achieve your goals without making your monthly payments increase.
Consolidating Your Debt
Perhaps you hope to cash out a portion of the home equity (cash out) to put toward other debt. If you have any higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of equity.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while building up your home equity faster? If this is your wish, the refinance loan can move you to a loan program with a short, for example: a 15 year loan. The mortgage payments will probably be higher than they were with the longer term loan, but in exchange, you will pay considerably less interest and will build up equity quicker. On the other hand, if your existing long-term loan has a small balance remaining, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you figure out your options and the many benefits in refinancing, please call us at 561-395-4264. We will help you reach your goals!
Want to know more about refinancing your home? Give us a call: 561-395-4264.