Choosing a Refinancing Option
The huge number of refinance options available to borrowers can be overwhelming. Call us at 954.920.9799 and we will help you qualify for the right refinance loan program to fit your financial needs. 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? In that case, getting a low, fixed-rate loan could be a wise choice for you. Perhaps you are currently 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 rates rise later, unlike with your ARM, when you get a fixed-rate mortgage, you set the low interest rate for the life of your loan. If you are expecting to live in your home for at least five more years, a fixed rate mortgage may be an especially good option for you. On the other hand, if you can see yourself moving in the near future, an adjustable rate mortgage with a small initial rate might be the ideal way to lower your monthly payment.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? Your house needs updating; your son has been accepted to University and needs tuition; or you are taking your family on a cruise. So you will want to qualify for a loan for more than the remaining balance of your present mortgage.Then you'll need However, if your interest rate is high now and you've held it for a long time, you may be able to reach your goals without making your mortgage payments higher.
Perhaps you hope to pull out some of the equity in your home (cash out) to use toward other debt. If you have any debt with high interest (such as credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have enough home equity.
Getting a Shorter Term Loan
Do you hope to build up equity quicker, and have your mortgage paid off sooner? Consider refinancing to a short-term loan, such as a 15-year mortgage loan. Your monthly payments will likely be higher than with a longer term mortgage, but the pay-off is: that you will pay considerably less interest and will build up equity more quickly. However, if you have held your current 30 year loan for a long time and the remaining balance is somewhat low, you may be do this without increasing your mortgage payment — it's even possible to save! To help you figure out 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? Call us: 954.920.9799.