Refinancing: Which Program is for You?
The huge number of refinance options available to borrowers can be overwhelming. Contact us at 954.920.9799 and we can work with you to qualify you for the right refinance loan program for your financial needs. In order to review your choices, you need to consider what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, the best option could be a low fixed-rate loan. Perhaps you are currently in a loan with a high, fixed interest rate, or a loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are planning to stay in your home for at least five more years, a fixed rate mortgage may be a particulary good choice for you. However, an ARM with a low intitial payment may be a better way to lower your mortgage payments if you expect to move within the near future.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? Your home needs updating; your son has gone to University and needs tuition money; or you are planning a special vacation. With this in mind, you need to find a loan higher than the balance remaining on your present mortgage loan.Then you need However, if your mortgage rate is high now and you've held it for a long time, you could be able to reach your goals without an increase in your mortgage payment.
Do you want to cash out some equity to consolidate other debt? Yes you can! If you have the equity in your home for it, taking care of other high interest debt (such as home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars in your budget each month.
Building up Equity More Quickly
Are you dreaming of paying off your loan more quickly, while building up your home equity faster? Then, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year loan. You will be paying less interest and increasing your equity more quickly, although your payments will usually be more than they were. But, you could be able to make the change without a higher monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is low enough. You could even pay less! To help you determine your options and the many benefits of refinancing, please contact us at 954.920.9799. We are here for you.
Want to know more about refinancing your home? Call us: 954.920.9799.