Selecting a Refinancing Option
When you are overwhelmed with all the choices, it may seem like there are even more loan programs than borrowers! Call us at 407-834-3377 and we can help you qualify for the right refinance loan program for your financial situation. What are your goals for your refinance loan? Keeping in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then 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 might want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage loan, even as interest rates rise. If you are expecting to live in your home for about five more years, a fixed rate mortgage may be a particulary good fit for you. However, 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 reduce your monthly payments.
Are you planning to cash out some of your equity in your refinance? Perhaps you need to update your kitchen, take care of your college kid's tuition, or take a cruise. Then you'll want to look for a loan above the remaining balance on your current mortgage loan.In that case, you will You'll need to get a loan for more than the remaining balance with your present mortgage loan in this case. You might not increase your mortgage payemnt, however, if you have had your existing mortgage for a long time, and/or your interest rate is high.
Perhaps you want to cash out some of the equity (cash out) to use toward other debt. If you have built up some home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) may be able to save you a lot of cash every month.
Paying it off Faster
Are you wanting to fatten up your home equity faster, and pay off your mortgage sooner? If this is your plan, your refinance loan can switch you to a mortgage program with a short, for example: a 15 year loan. Even though your monthly payments will usually be more, you can be paying less interest; so your home equity will rise up faster. But, you might be able to make the change without a bigger monthly payment if your longer term mortgage was closed a while back, and the remaining balance is small. You could even make it lower! To help you understand your options and the numerous benefits of refinancing, please call us at 407-834-3377. We are here for you.
Want to know more about refinancing your home? Call us: 407-834-3377.
Click on the link below to use our handy refinance calculator. This calculator will help you to decide whether or not you should refinance your current mortgage at a lower interest rate. Not only will this calculator calculate the monthly payment and net interest savings, but it will also calculate how many months it will take to break even on the closing costs.
This calculator will help you to decide whether or not it would be advantageous for you to refinance either a single mortgage, or the consolidation of a first and second mortgage, into a single mortgage. Not only will this calculator calculate the monthly payment and net interest savings (if applicable), but it will also calculate how many months it will take to break even on the closing costs (if applicable).