Choosing a Refinancing Loan
When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than borrowers! Contact us at 954.920.9799 and we can work with you to qualify you for the right loan program to fit your needs. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even if interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about five years), a fixed-rate mortgage can particularly be a wise choice. However, an ARM with a low intitial payment may be a smarter way to reduce your monthly payments if you expect to move in the near future.
Is "cashing out" your primary purpose for refinancing? It could be you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you'll need to get a loan higher than the remaining balance of your current mortgage loan.So you You will be looking for a loan for a bigger amount than the balance remaining of your current mortgage in this case. If you've had your existing mortgage for a long time and/or have a mortgage loan whose interest rate is high, you might\could be able to do this without making your mortgage payment higher.
Do you want to cash out a portion of your equity to consolidate other debt? Good plan! If you hold some higher interest debts (such as credit cards or vehicle loans), you might 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 Faster
Are you dreaming of paying off your loan more quickly, while beefing up your home equity quicker? Consider refinancing with a shorterterm loan, like a 15-year mortgage. You will be paying less interest and growing your home equity faster, although your mortgage payments will generally be more than they were. However, if you have held your current thirty year loan for a number of years and the remaining balance is rather low, you may be able to do this without increasing your monthly mortgage payment — you may even be able to save! To help you understand your options and the many benefits of refinancing, please call us at 954.920.9799. We are here for you.
Curious about refinancing? Give us a call at 954.920.9799.