Refinancing: Which Option is for You?
There are not as many loan programs as there are applicants, but sometimes it feels like it! We can guide you to find the loan program that will fit your situation the best. Call us at 561-207-8082 to get started. There are some general questions to ask yourself while you review the options.
Lowering Your Payments
Are achieving lower monthly payments and an improved rate your main reasons for refinancing? If so, the best option might be a low fixed-rate loan. Perhaps you are currently in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in that low rate for the life of your loan. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a great choice. However, an ARM with a initial low payment could be a wiser way to lower your mortgage payments if you expect to move within the near future.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Perhaps you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. In this case, you want to find a loan higher than the remaining balance of your existing mortgage loan.So you You'll be looking for a loan for more than the current balance of your current mortgage in that case. If you've had your current mortgage for a long time and/or have a mortgage loan whose interest rate is high, you may be able to do this without increasing your monthly payment.
Do you hold other debt, maybe with higher interest, that you'd like to consolidate? If you have some higher interest debts (such as credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Switching to a Shorter Term Loan
Do you need to build up home equity more quickly, and have your mortgage paid off more quickly? Consider refinancing to a shorterterm loan, often a 15-year mortgage. The monthly payments will likely be more than they were with your longer term mortgage, but in exchange, that you will pay quite a bit less interest and can build up equity quicker. However, if you've held your current thirty year mortgage for a long time and the remaining balance is relatively low, you might be do this without raising your mortgage payment — you could even be able to save! To help you understand your options and the many benefits in refinancing, please call us at 561-207-8082. We would love to help you reach your goals!
Curious about refinancing your home? Call us: 561-207-8082.