Which Refinancing Option is Best for You?
There are an enormous number of refinancing options available to borrowers. Call us at 954.920.9799 and we will match you with the refinance program that best fits you. What are your goals for refinancing? Considering in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the interest rate can vary. Even when interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you expect to live in your home for about five more years, a loan with a fixed rate may be a particulary good option for you. However, if you do see yourself selling your home within several years, an adjustable rate mortgage with a low initial rate might be the ideal way to reduce your monthly payment.
Refinancing to Cash Out
Are you refinancing mainly to "cash out" some home equity? Your house needs improvements; your daughter has gone to college and needs tuition money; or you are taking your family on a cruise. Then you need to find a loan higher than the remaining balance on your current mortgage.In that case, you will need However, if your interest rate is high now and you've held it for a long time, you may be able to achieve your goals without making your mortgage payments bigger.
Do you want to pull out some of your home equity to consolidate other debt? Good idea! If you hold some 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 through your refinance, if you have the home equity built up to make it work.
Building up Equity More Quickly
Are you wanting to fatten your equity faster, and pay off your mortgage loan sooner? If this is your wish, the refinance can move you to a mortgage loan program with a short, such as a 15 year loan. Your mortgage payments will probably be more than with your longer term loan, but in exchange, that you will pay considerably less interest and will build up equity quicker. But, you may be able to switch without much increase in your monthly mortgage payment if your longer term loan was closed a while back, and the remaining balance is somewhat low. You may even make it lower! To help you figure out your options and the numerous benefits in refinancing, please call us at 954.920.9799. We would love to help you reach your goals!
Curious about refinancing? Call us: 954.920.9799.