Which Refinancing Option is Best for You?
There are a huge number of refinancing options available to borrowers. Call us at 954.920.9799 and we will match you with the loan program that best fits you. There are several questions to ask yourself as you look at the options.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the best option for you. Maybe 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 mortgage with a fixed rate, you lock in the low rate for the term of your mortgage. If you expect to stay in your home for at least five more years, a fixed rate mortgage may be an especially good choice for you. However, if you do see yourself moving in the near future, an ARM with a low initial rate could be the best way to reduce your monthly payment.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? Perhaps you're planning a special vacation; you need to pay college tuition for your child; or you plan to renovate your home. Then you'll want to find a loan higher than the balance remaining of your existing mortgage.So you'll want to qualify for a loan program for a bigger amount than the balance remaining on your current mortgage loan. However, if your mortgage rate is currently high and you've held it for quite a few years, you may be able to achieve your goals without a rise in your mortgage payment.
Do you have other debt, maybe with higher interest, that you need to consolidate? If you own some higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the home equity built up to make it work.
Paying it off Faster
Do you want to build up home equity quicker, and pay off your mortgage sooner? If this is your hope, your refinance can move you to a loan program with a short, for example: a 15 year loan. The monthly payments will probably be more than they were with the long-term loan, but the pay-off is: you will pay substantially less interest and will build up equity more quickly. Conversely, if your current longer term loan has a low remaining balance, and was closed a number of years ago, you may be able to make the move without paying more each month. To help you understand your options and the multiple benefits of refinancing, please contact us at 954.920.9799. We are here for you.
Want to know more about refinancing? Call us: 954.920.9799.