Refinancing: Which Program is for You?
When you are overwhelmed with so many choices, it may seem like there are even more refinance loan programs than applicants! We can guide you to choose the refinance loan program that can fit your situation the best. Contact us at 954.920.9799 to begin the process. There are some general things to keep in mind while you consider the choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, your best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you set that low interest rate for the term of your loan. If you aren't planning on moving in the near future (about 5 years), a fixed rate mortgage loan can especially be a great option. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced payments.
Are you wanting to cash out some of your equity in your refinance? It could be you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. Then you will need to qualify for a loan for more than the balance remaining on your existing mortgage.In that case, you'll want to qualify for a loan program for a bigger amount than the balance remaining on your present mortgage. If you've had your existing mortgage for quite a while and/or have a mortgage with high interest, you may be able to do this without making your mortgage payment bigger.
Consolidating Your Debt
Do you want to pull out some equity to consolidate other debt? Great idea! If you have a fair amount of home equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a lot of money every month.
Building up Equity Faster
Are you dreaming of paying off your loan faster, while beefing up your home equity more quickly? Consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. Even though your mortgage payment amount will likely be increased, you can save on interest; so your equity amount will build up faster. On the other hand, if your existing long-term loan has a low remaining balance, and was closed a while ago, you may be able to make the switch without paying more each month. To help you determine your options and the multiple benefits of refinancing, please contact us at 954.920.9799. We would love to help you reach your goals!
Curious about refinancing your home? Give us a call at 954.920.9799.