Which Refinancing Loan Program is Right for You?
Even though it seems like it sometimes, there are not as many refinance options as there are applicants! Contact us at 407-834-3377 and we can match you with the refinance program that is ideal for your needs. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, the best choice might be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low rate for the term of your mortgage. 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 wise choice. However, an ARM with a low intitial payment may be a wiser way to lower your mortgage payments if you expect to move in the next few years.
Getting Out some Cash
Are you refinancing mainly to pull out some home equity for an infusion of cash? It could be you want to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. With this in mind, you'll need to look for a loan higher than the balance remaining on your present mortgage loan.So you'll want to qualify for a loan program for a higher amount than the remaining balance on your current mortgage. However, if your interest rate is high now and you've held it for quite a few years, you may be able to achieve your goals without a rise in your mortgage payment.
Consolidating Your Debt
Maybe you hope to pull out a portion of the equity (cash out) to use toward other debt. If you have a fair amount of home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a chunk of money each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your equity faster? If this is your plan, the refinance can change you to a loan program with a short, for example: a 15 year loan. Although your monthly payment amount will probably be increased, you will save on interest; so your home equity will rise up faster. Conversely, if your current long-term mortgage loan has a low balance remaining, and was closed a while ago, you could be able to make the move without paying more each month. To help you understand your options and the multiple benefits of refinancing, please contact us at 407-834-3377. We are here for you.
Want to know more about refinancing? Give us a call at 407-834-3377.
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