Refinancing: Which Option is for You?
There are a huge number of refinancing programs available to borrowers. Call us at 954.920.9799 and we can work with you to qualify you for the perfect refinance loan to fit your situation. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are getting lower payments and a lower rate your main reasons for refinancing? In that case, the best choice may be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate varies. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the mortgage, even if interest rates rise. This can be particularly a wise choice if you don't think you'll be moving within the next 5 years or so. On the other hand, if you do see yourself moving within the next few years, an ARM with a small initial rate might be the best way to reduce your monthly payment.
Is your refinance goal primarily to pull out some of your equity for an infusion of cash? Maybe you want to make home improvements, pay your child's college tuition bill, or take a cruise. In this case, you want to get a loan for more than the remaining balance on your existing mortgage.So you will You will need to find a loan for a higher amount than the current balance of your existing home loan in that case. However, if your interest rate is high now and you've held it for quite a few years, you could be able to achieve your goals without making your mortgage payments higher.
Do you want to cash out a portion of your equity to consolidate additional debt? Great plan! If you have enough home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a chunk of cash each month.
Paying it off Sooner
Are you wanting to fatten your home equity faster, and pay your mortgage loan off more quickly? If this is your plan, your refinance can move you to a mortgage program with a shorter term, for example: a 15 year loan. The monthly payments will likely be more than with a long-term loan, but the pay-off is: you will pay quite a bit less interest and will build up equity quicker. On the other hand, if your existing longer term mortgage has a small remaining balance, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please call us at 954.920.9799. We are here for you.
Curious about refinancing your home? Call us at 954.920.9799.