Refinancing: Which Option is for You?
There aren't as many refinance loan programs as there are applicants, but at times it seems like it! Contact us at 954.920.9799 and we will match you with the refinance program that fits you best. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are achieving lower payments and an improved rate your main refinance goals? In that case, your best option may be a low fixed-rate loan. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your loan, even when interest rates rise. If you are not planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise loan option. However, if you can see yourself selling your home within several years, an ARM with a low initial rate may be the best way to bring down your monthly payments.
Is "cashing out" your main purpose for refinancing? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you'll need to get a loan above the remaining balance of your current mortgage loan.With this goal, you want to need to qualify for a loan for a higher amount than the balance remaining on your present mortgage loan. If you've had your current mortgage loan for a number of years and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Do you want to pull out a portion of your equity to consolidate other debt? Yes you can! If you own any higher interest debts (such as credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough home equity.
Getting a Shorter Term Loan
Do you need to build up home equity quicker, and pay off your mortgage sooner? Then, you'll want to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage program. You will be paying less interest and increasing your home equity more quickly, even though your mortgage payments will generally be higher than they were. However, if you have had your current 30 year mortgage for a number of years and the remaining balance is rather low, you might be do this without increasing your mortgage payment — you could even be able to save! To help you determine your options and the many benefits in refinancing, please contact us at 954.920.9799. We are here to help you reach your goals!
Want to know more about refinancing? Call us at 954.920.9799.