Which Refinancing Loan Program is Best for You?
There aren't as many refinance loan programs as there are borrowers, but it seems like it sometimes! Call us at 954.920.9799 and we can work with you to qualify you for the right refinance loan program to fit your financial needs. What are your goals for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan might be a wise option for you. Perhaps you now have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest varies. Even as interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you expect to live in your home for at least five more years, a loan with a fixed rate may be an especially good choice for you. On the other hand, if you can see yourself moving within the next few years, an ARM mortgage with a low initial rate could be the best way to lower your monthly payments.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity in your refinance? It could be you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. With this in mind, you will need to find a loan above the balance remaining on your present mortgage.With this goal, you will You will want to apply for a loan for a bigger amount than the current balance on your present mortgage in this case. However, if your interest rate is currently high and you've held it for quite a few years, you may be able to reach your goals without a rise in your mortgage payment.
Perhaps you'd like to cash out some of the home equity (cash out) to use toward other debt. If you have a fair amount of equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a lot of money every month.
Building up Equity More Quickly
Do you hope to build up equity more quickly, and have your mortgage paid off more quickly? Then, you need to find out about refinancing to a short term mortgage - such as a fifteen-year loan. The payments will likely be more than with the longer term loan, but the pay-off is: that you will pay considerably less interest and will build up equity quicker. But, you may be able to make the change without a bigger monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is low. You could even make it lower! To help you determine your options and the multiple benefits of refinancing, please contact us at 954.920.9799. We are here for you.
Curious about refinancing? Call us: 954.920.9799.