Choosing a Refinancing Loan
Even though it seems like it sometimes, there are not as many refinance choices as there are applicants! Call us at 407-834-3377 and we will help you qualify for the best refinance loan to fit your financial needs. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the best choice for you. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage loan, even as interest rates rise. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can particularly be a good option. However, if you can see yourself moving within the next few years, an ARM with a small initial rate might be the best way to reduce your monthly payments.
Are you hoping to cash out some of your home equity with your refinance? It could be you want to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. Then you'll need to find a loan higher than the balance remaining of your existing mortgage loan.Then you will want to need to qualify for a loan program for a higher amount than the remaining balance on your existing mortgage. You might not increase your mortgage payemnt, however, if you have had your current loan for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Perhaps you'd like to pull out some home equity (cash out) to use toward other debt. If you have a fair amount of home equity, paying toward other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) could help save you a lot of money each month.
Building up Equity More Quickly
Are you wanting to fatten your equity faster, and pay off your mortgage sooner? Consider refinancing to a shorterterm loan, often a 15-year mortgage. Although your monthly payments will usually be more, you will save on interest; so your equity amount will build up faster. Conversely, if your current longer term mortgage loan has a low remaining balance, and was closed a number of years ago, you may be able to make the move without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please contact us at 407-834-3377. We can help you reach your goals!
Curious about refinancing your home? Give us a call: 407-834-3377.
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