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Which refinancing option is best for you?

February 4th, 2022 4:34 PM by Holly Ecimovic

There are many refinancing programs available to borrowers. Contact us at 407-834-3377 and we will work with you to qualify you for the best loan program for your situation. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.


Lowering Your Payments

Are achieving better payments and a better rate your main reasons for refinancing?

In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance.

Even if rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you set that low interest rate for the life of your loan. This kind of loan is particularly a good idea if you aren't expecting a move within the next 5 years or so. However, an ARM with an initial low payment could be a smarter way to reduce your mortgage payments if you expect to move within the near future.


Getting Out some Cash

Are you hoping to cash out some of your equity with your refinance?

Your house needs new carpet; your daughter has been accepted to college and needs tuition; or you have a special family vacation planned. So you will need to qualify for a loan for more than the remaining balance of your existing mortgage. In this case, you'll want to qualify for a loan for more than the remaining balance on your current mortgage loan.

You might not have an increase in your monthly payment, though, if you have had your existing mortgage loan for a long time, and/or your interest rate is high.

Consolidating Your Debt

Do you want to pull out a portion of your home equity to consolidate additional debt?

Excellent idea!

If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars each month.

Getting a Shorter Term Loan

Are you dreaming of paying off your loan sooner, while beefing up your equity faster? If this is your hope, your refinance mortgage can switch you to a mortgage loan program with a short, for example: a 15 year loan.

Even though your monthly payment amount will likely be increased, you will be paying less interest; so your home equity will build up faster.

On the other hand, if your current long-term loan has a small remaining balance, and was closed a number of years ago, you may even be able to make the change without paying more each month.

To help you understand your options and the many benefits of refinancing, please call us at 407-834-3377. We are here for you.

Want to know more about refinancing? Give us a call: 407-834-3377.

Posted by Holly Ecimovic on February 4th, 2022 4:34 PM

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Contemporary Mortgage Services, Inc

498 Palm Springs Drive Suite 220
Altamonte Springs, FL 32701