Choosing a Refinancing Loan
Even though it seems like it sometimes, there are not as many loan options as there are borrowers! We can help you locate the loan 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 while you look at the options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan might be a good choice for you. Perhaps you currently have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in that low interest rate for the life of your loan. If you aren't planning on moving in the near future (about 5 years), a fixed-rate mortgage can especially be a good option. However, if you do see yourself moving in the near future, an adjustable rate mortgage with a small initial rate may be the best way to lower your monthly payment.
Getting Out some Cash
Are you refinancing mainly to pull out some of your equity for an infusion of cash? Your house needs improvements; your daughter has gone to University and needs tuition money; or you are taking your family on a cruise. So you will need to get a loan for more than the balance remaining of your present mortgage loan.In that case, you want to qualify for a loan program for a higher number than the balance remaining on your current mortgage loan. However, if your interest rate is high now and you have held it for quite a few years, you could be able to achieve your goals without making your monthly payments increase.
Consolidating Your Debt
Perhaps you want to cash out a portion of the equity (cash out) to put toward other debt. If you have the home equity for it, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars in your budget each month.
Paying it off Faster
Are you dreaming of paying off your loan sooner, while beefing up your home equity faster? If this is your plan, your refinance can change you to a mortgage loan program with a shorter term, like a 15 year loan. Although your mortgage payment amount will probably be increased, you will save on interest; so your home equity will build up faster. However, if you have had your existing thirty year loan for a long time and the remaining balance is somewhat low, you may be do this without increasing your monthly payment — it's even possible to save! To help you figure out your options and the multiple benefits of refinancing, please contact us at 561-395-4264. We can help you reach your goals!
Want to know more about refinancing? Call us at 561-395-4264.