Refinancing: Which Loan Program is for You?

Although it may seem like it sometimes, there aren't as many loan options as there are borrowers! Call us at 561-395-4264 and we can help you qualify for the perfect refinance loan program to fit your financial situation. There are several things to bear in mind as you look at your choices.

Lowering Your Payments

Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — in which the interest rate varies. Even when rates come up later, unlike with your ARM, when you close a fixed rate mortgage, you set that low rate for the life of your mortgage. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can especially be a good choice. However, if you do see yourself selling your home before too long, an ARM with a small initial rate could be the best way to bring down your monthly payment.

Getting Out some Cash

Is your refinance goal mainly to "cash out" some home equity? Perhaps you want to pay for home improvements, take care of your college kid's tuition, or take your dream vacation. With this in mind, you need to look for a loan higher than the remaining balance on your current mortgage loan.Then you will need You might not increase your mortgage payemnt, however, if you have had your current mortgage loan for a while, and/or your interest rate is high.

Consolidating Debt

Do you have other debt, maybe with a high interest rate, that you need to consolidate? If you have the home equity for it, taking care of other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars monthly.

Getting a Shorter Term Loan

Do you want to build up equity quicker, and pay off your mortgage faster? If this is your hope, the refinance mortgage can change you to a mortgage program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your payments will generally be more than you have been paying. However, if you have held your current thirty year loan for a number of years and the loan balance is somewhat low, you may be do this without raising your monthly mortgage payment — you may even be able to save! To help you determine your options and the multiple benefits of refinancing, please contact us at 561-395-4264. We are here for you.

Want to know more about refinancing your home? Call us: 561-395-4264.

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