Selecting a Refinancing Option
When you are overwhelmed with so many options, it may seem as if there are even more refinance programs than borrowers! Call us at 407-834-3377 and we will match you with the refinance loan program that fits you best. surveying your choices, you'll need to list what you want to achieve with your refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Perhaps you now have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even when rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set that low interest rate for the life of your mortgage. If you are not planning on moving in the near future (about five years), a fixed rate mortgage loan can particularly be a great choice. On the other hand, if you do see yourself selling your home before too long, an ARM mortgage with a low initial rate could be the best way to bring down your monthly payments.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? Your house needs renovating; your daughter has gone to college and needs tuition; or you are taking your family on a cruise. With this in mind, you'll want to find a loan for more than the balance remaining on your present mortgage.In this case, you will You will be looking for a loan for a bigger amount than the remaining balance on your present mortgage in this case. If you've had your current mortgage for quite a while and/or have a mortgage with a high interest rate, you may be able to do this without making your monthly payment bigger.
Maybe you hope to pull out some of the home equity (cash out) to put toward other debt. If you hold some debt with steep interest (like credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the equity built up to make it work.
Building up Equity More Quickly
Do you plan to build up home equity more quickly, and have your mortgage paid off more quickly? Then, you want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. The monthly payments will likely be higher than with the long-term mortgage, but the pay-off is: that you will pay quite a bit less interest and can build up equity more quickly. Conversely, if your existing long-term mortgage loan has a small balance remaining, and was closed a while ago, you may even be able to make the change 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 are here to help you reach your goals!
Want to know more about refinancing? Give us a call at 407-834-3377.
Get a Refinance Quote
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