Which Refinancing Program is Best for You?
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There are not as many refinance loan options as there are borrowers, but sometimes it seems like it! Contact us at 561-392-0040 and we can match you with the loan program that fits you best. There are some general things to bear in mind as you look at your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest varies. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage loan, even as interest rates rise. If you are planning to stay in your home for about five more years, a fixed rate loan may be an especially good fit for you. On the other hand, if you do see yourself moving in the near future, an adjustable rate mortgage with a low initial rate could be the best way to lower your monthly payments.
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Perhaps you want to pay for home improvements, take care of your college kid's tuition, or take a cruise. With this in mind, you will want to find a loan higher than the balance remaining on your existing mortgage.With this goal, you will want You may not increase your monthly payment, however, if you have had your current mortgage loan for a long time, and/or your loan interest rate is high.
Perhaps you'd like to cash out a portion of the home equity (cash out) to use toward other debt. If you have built up some home equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of money every month.
Paying it off Sooner
Do you want to build up equity more quickly, and have your mortgage paid off more quickly? You should consider refinancing with a shorterterm loan, like a 15-year mortgage loan. You will be paying less interest and growing your equity faster, even though your mortgage payments will usually be bigger than you were paying. But, you may be able to switch without a higher monthly payment if your longer term loan was closed a while ago, and the remaining balance is low. You could even make it lower! To help you understand your options and the numerous benefits of refinancing, please contact us at 561-392-0040. We are here for you.
Want to know more about refinancing? Give us a call: 561-392-0040.