Refinancing: Which Option is for You?

There are a huge number of refinancing options available to borrowers. Contact us at 954.920.9799 and we will match you with the loan program that fits you best. There are some general questions to ask yourself while you review the choices.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you currently have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the interest rate varies. Even when rates rise later, unlike with your ARM, when you close a fixed rate mortgage, you set that low interest rate for the life of your mortgage. This is particularly a good idea if you don't expect to sell your home within the next five years or so. However, if you can see yourself selling your home within several years, an adjustable rate mortgage with a small initial rate may be the ideal way to bring down your monthly payment.

Cashing Out

Is "cashing out" your main purpose for refinancing? Perhaps you want to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. So you will need to find a loan for more than the balance remaining on your existing mortgage.Then you will You'll be looking for a loan for a bigger amount than the current balance of your current mortgage in this case. If you've had your existing mortgage for a number of years and/or have a loan with a high interest rate, you may be able to do this without making your mortgage payment higher.

Consolidating Debt

Perhaps you hope to cash out some of the home equity (cash out) to put toward other debt. If you own any debt with high interest (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of home equity.

Paying it off Sooner

Are you planning to fatten up your home equity faster, and pay your mortgage loan off more quickly? If this is your hope, your refinance loan can switch you to a mortgage program with a shorter term, such as a 15 year loan. The mortgage payments will likely be more than with the long-term loan, but in exchange, you will pay substantially less interest and will build up equity more quickly. However, if you have had your existing thirty year mortgage loan for a long time and the loan balance is rather low, you could be do this without raising your mortgage payment — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please contact us at 954.920.9799. We are here for you.

Curious about refinancing? Call us at 954.920.9799.

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