Which Refinancing Program is Best for You?
Even though it seems like it at times, there aren't as many loan options as there are borrowers! Contact us at 954.920.9799 and we'll work with you to qualify you for the right refinance program to fit your situation. There are several questions to ask yourself as you consider the choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? If so, a good option could be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you plan 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. However, if you do see yourself selling your home before too long, an ARM mortgage with a low initial rate might be the best way to reduce your monthly payments.
Getting Out some Cash
Is your refinance goal primarily to pull out some equity for an infusion of cash? Your home needs improvements; your daughter has gone to college and needs tuition; or you are taking your family on a cruise. Then you'll need to get a loan higher than the remaining balance of your existing mortgage.Then you You will need to find a loan for a bigger amount than the current balance with your existing home loan in this case. However, if your mortgage rate is high now and you've had it for a long time, you may be able to achieve your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you want to cash out some of your equity to consolidate other debt? Yes you can! If you have some higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have the home equity built up to make it work.
Building up Equity Faster
Are you wanting to fatten up your home equity faster, and get your mortgage paid off more quickly? If this is your goal, your refinance mortgage can switch you to a mortgage loan program with a shorter term, like a 15 year loan. The monthly payments will likely be higher than with a longer term mortgage loan, but in exchange, that you will pay considerably less interest and can build up equity more quickly. However, if you have had your existing 30 year mortgage for a long time and the loan balance is somewhat low, you might be do this without increasing your monthly payment — it's even possible to save! To help you determine your options and the numerous benefits of refinancing, please call us at 954.920.9799. We would love to help you reach your goals!
Curious about refinancing? Call us at 954.920.9799.