Refinancing: Which Program is for You?
When you are overwhelmed with all the options, it may seem as if there are even more refinance programs than borrowers! Call us at 407-834-3377 and we'll work with you to qualify you for the best refinance loan program for your financial needs. There are several questions to ask yourself while you review your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Maybe you are currently in a mortgage with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. This can be especially a wise choice if you don't think you'll be moving within the next 5 years or so. On the other hand, if you do see yourself moving within the next few years, an ARM mortgage with a low initial rate may be the best way to lower your monthly payment.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Perhaps you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you'll need to get a loan higher than the remaining balance on your current mortgage.So you will need You may not have an increase in your monthly payemnt, however, if you've had your current mortgage for a number of years, and/or your loan interest rate is high.
Maybe you want to pull out a portion of the equity in your home (cash out) to use toward other debt. If you hold some higher interest debts (such as credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the equity built up to make it work.
Paying it off Faster
Do you need to build up equity quicker, and have your mortgage paid off more quickly? Then, you'll need to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. Even though your mortgage payments will likely be more, you will save on interest; so your equity will build up faster. On the other hand, if your existing longer term mortgage loan has a small remaining balance, and was closed a while ago, you may be able to make the move without paying more each month. To help you determine your options and the many benefits in refinancing, please contact us at 407-834-3377. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call at 407-834-3377.
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