Which Refinancing Option is Best for You?
When you are overwhelmed with so many choices, it may seem like there are even more refinance programs than applicants! We can help you locate the loan program that will fit your financial situation the best. Call us at 954.920.9799 to begin the process. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan could be a good choice for you. Maybe you now have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — with which the interest rate varies. Even when interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. This kind of loan is particularly a good option if you don't think you'll be moving within the next five years or so. However, if you do see yourself moving before too long, an ARM with a small initial rate may 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? Maybe you want to update your kitchen, pay your child's college tuition bill, or take your dream vacation. So you need to get a loan higher than the remaining balance of your current mortgage.So you You'll want to find a loan for a bigger amount than the balance remaining on your existing home loan in that case. You might not increase your monthly payemnt, though, if you have had your existing mortgage for a long time, and/or your interest rate is high.
Do you have other debt, perhaps with a higher interest rate, that you'd like to consolidate? If you have the home equity for it, paying off other high interest debt (such as credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars a month.
Paying it off Sooner
Do you plan to build up home equity more quickly, and have your mortgage paid off more quickly? Consider refinancing to a short-term loan, such as a 15-year mortgage loan. You will be paying less interest and increasing your equity faster, even though your payments will likely be more than you have been paying. On the other hand, if your current longer term mortgage has a small balance remaining, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you determine your options and the multiple benefits of refinancing, please call us at 954.920.9799. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call at 954.920.9799.