Refinancing: Which Loan Program is for You?
There are a huge number of refinancing options available to borrowers. Contact us at 407-834-3377 and we will help you qualify for the right refinance loan program to fit your needs. In the interest of looking at your choices, you can determine what you want to achieve with the refinance.
Lowering Your Payments
Are achieving better monthly payments and a lower rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even as interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you plan to live in your home for about five more years, a fixed rate mortgage may be a particulary good fit for you. On the other hand, if you can see yourself moving before too long, an ARM mortgage with a small initial rate could be the ideal way to reduce your monthly payments.
Getting Out some Cash
Is your refinance goal mainly to pull out some of your home equity for an infusion of cash? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you are updating your kitchen. So you need to find a loan for more than the remaining balance on your present mortgage.With this goal, you'll want to find a loan program for a higher number than the remaining balance on your current mortgage loan. You may not have an increase in your monthly payemnt, however, if you have had your existing mortgage loan for a while, and/or your interest rate is high.
Do you hold other debt, maybe with higher interest, that you need to consolidate? If you have some higher interest debts (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Are you wanting to fatten your equity faster, and pay off your mortgage loan sooner? Consider refinancing with a short-term loan, such as a 15-year mortgage loan. Even though your monthly payment amount will usually be more, you can be paying less interest; so your equity amount will rise up faster. But, you might be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage was closed a while back, and the remaining balance is somewhat low. You could even pay less! To help you figure out your options and the multiple benefits in refinancing, please call us at 407-834-3377. We are here for you.
Curious about refinancing your home? Give us a call at 407-834-3377.
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