Refinancing: Which Loan Program is for You?
There aren't as many refinance loan programs as there are borrowers, but it seems like it sometimes! We can guide you to locate the refinance loan program that will fit your financial situation the best. Contact us at 407-834-3377 to get started. There are some general things to bear in mind as you consider your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the ideal choice for you. Maybe you are currently in a loan with a high, fixed interest rate, or a loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the loan, even as interest rates rise. If you aren't expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a great choice. On the other hand, if you can see yourself selling your home before too long, an ARM mortgage with a low initial rate may be the best way to bring down your monthly payments.
Is "cashing out" your main purpose for your refinance? Perhaps you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you will want to look for a loan higher than the balance remaining on your present mortgage.So you will want You may not increase your mortgage payemnt, however, if you've had your existing mortgage for a while, and/or your interest rate is high.
Maybe you'd like to cash out some of the home equity (cash out) to use toward other debt. If you have enough equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might help save you a chunk of money each month.
Building up Equity Faster
Are you dreaming of paying off your loan faster, while beefing up your home equity more quickly? In that case, you'll want to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. Although your monthly payment amount will usually be increased, you will save on interest; so your equity amount will build up faster. But, you could be able to switch without a higher monthly mortgage payment if your long term mortgage was closed a while back, and the remaining balance is somewhat low. You may even make it lower! To help you determine your options and the many benefits of refinancing, please call us at 407-834-3377. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us at 407-834-3377.
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