Which Refinancing Loan Program is Right for You?
Although it seems like it sometimes, there are not as many loan programs as there are applicants! We can guide you to choose the refinance loan program that can fit your situation the best. Call us at 954.920.9799 to begin the process. There are some general things to keep in mind as you review your options.
Lowering Your Payments
Are getting reduced monthly payments and an improved rate your main reasons for refinancing? In that case, your best choice could be a low fixed-rate loan. Maybe you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate varies. Even if rates come up later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in that low rate for the life of your loan. If you are planning to stay in your home for at least five more years, a fixed rate loan may be a particulary good option for you. However, an ARM with a low intitial payment may be a smarter way to reduce your monthly payments if you see yourself moving within the near future.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? It could be you want to update your kitchen, pay your child's college tuition bill, or take your dream vacation. So you will want to qualify for a loan for more than the balance remaining of your current mortgage.With this goal, you will want to find a loan program for a higher amount than the remaining balance on your current mortgage loan. You may not have an increase in your monthly payemnt, though, if you have had your existing loan for a long time, and/or your loan interest rate is high.
Do you have other debt, maybe with higher interest, that you need to consolidate? If you own any debt with higher interest (such as credit cards or car loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have the equity built up to make it work.
Building up Equity Faster
Are you hoping to fatten up your equity faster, and pay your mortgage off sooner? Then, you'll need to look into refinancing to a short term mortgage - like a fifteen-year loan. You will be paying less interest and growing your home equity faster, even though your monthly payments will usually be bigger than they were. However, if you have held your current 30 year mortgage loan for a number of years and the remaining balance is somewhat low, you could be do this without increasing your monthly mortgage payment — you could even be able to save! To help you understand your options and the numerous benefits in refinancing, please contact us at 954.920.9799. We will help you reach your goals!
Curious about refinancing? Give us a call at 954.920.9799.