Choosing a Refinancing Loan
There are an enormous number of refinancing programs available to borrowers. Call us at 954.920.9799 and we can match you with the loan program that fits you best. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? Then your best choice may be a low fixed-rate loan. Perhaps you currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in the low rate for the term of your mortgage. If you aren't expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great choice. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Are you refinancing mainly to pull out some equity for an infusion of cash? Perhaps you're going on a much needed vacation; you need to pay college tuition for your child; or you plan to renovate your home. In this case, you want to qualify for a loan higher than the balance remaining on your present mortgage loan.So you want to find a loan for a bigger amount than the balance remaining on your current mortgage loan. If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Do you have other debt, maybe with higher interest, that you want to consolidate? If you hold any debt with high interest (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 home equity built up to make it work.
Paying it off Faster
Are you wanting to fatten up your home equity faster, and pay off your mortgage loan sooner? Then, you want to look into refinancing to a short term mortgage loan - like a fifteen-year loan. Although your monthly payments will usually be increased, you can save on interest; so your equity amount will build up faster. But, you may be able to make the change without a bigger monthly mortgage payment if your long term mortgage loan was closed a while back, and the remaining balance is low. You may even make it lower! To help you understand your options and the multiple benefits of refinancing, please contact us at 954.920.9799. We are here for you.
Curious about refinancing? Call us at 954.920.9799.