Which Refinancing Option is Best for You?
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There are not as many loan programs as there are borrowers, but it seems like it sometimes! Call us at 561-791-8160 and we can match you with the loan program that is ideal for you. There are some general questions to ask yourself while you consider the choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then the best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when rates get higher later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in that low rate for the life of your mortgage. If you are expecting to live in your home for at least five more years, a loan with a fixed rate may be a particularly good fit for you. On the other hand, if you do see yourself moving in the near future, an ARM mortgage with a low initial rate might be the ideal way to reduce your monthly payment.
Refinancing to Cash Out
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Your house needs new carpet; your daughter has gone to college and needs tuition money; or you have a special family vacation planned. With this in mind, you will need to get a loan higher than the remaining balance on your existing mortgage loan.With this goal, you'll want to qualify for a loan program for a higher number than the remaining balance on your present mortgage loan. If you've had your current mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment higher.
Do you want to pull out a portion of your equity to consolidate other debt? Good idea! If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Building up Equity More Quickly
Do you hope to build up equity more quickly, and pay off your mortgage more quickly? If this is your goal, your refinance mortgage can change you to a loan program with a short, such as a 15 year loan. You will be paying less interest and growing your equity more quickly, although your monthly payments will likely be bigger than you have been paying. But, you might be able to switch without a higher monthly mortgage payment if your long term loan was closed a while back, and the balance remaining is somewhat low. You could even make it lower! To help you figure out your options and the many benefits in refinancing, please call us at 561-791-8160. We are here for you.
Curious about refinancing your home? Call us: 561-791-8160.