Refinancing: Which Loan Program is for You?
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There are an enormous number of refinancing options available to borrowers. Call us at (305) 891-6500 and we can match you with the refinance loan program that fits you best. In the interest of looking at your choices, you need to list what you want to achieve with the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a mortgage loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates come up later, unlike with your ARM, when you get a fixed rate mortgage, you set that low interest rate for the life of your mortgage. This kind of loan is particularly a good option if you aren't planning a move within the next 5 years or so. However, if you do see yourself selling your home in the near future, an ARM with a small initial rate could be the ideal way to bring down your monthly payment.
Are you refinancing primarily to pull out some of your equity for an infusion of cash? Perhaps you're going on a much needed vacation; you need to pay college tuition for your child; or you are updating your kitchen. So you will want to apply for a loan above the balance remaining of your existing mortgage.With this goal, you'll You'll need to apply for a loan for a higher amount than the current balance on your existing home loan in that case. However, if your interest rate is high now and you've held it for a long time, you may be able to accomplish your goals without making your mortgage payments increase.
Consolidating Your Debt
Perhaps you'd like to cash out some of the equity in your home (cash out) to put toward other debt. If you have built up some home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a lot of money each month.
Paying it off Sooner
Do you need to build up equity quicker, and pay off your mortgage sooner? If this is your wish, your refinance loan can switch you to a mortgage loan program with a shorter term, such as a 15 year loan. You will be paying less interest and growing your home equity faster, even though your mortgage payments will likely be higher than they were. But, you could be able to make the change without a bigger monthly payment if your longer term mortgage loan was closed a while ago, and the balance remaining is somewhat low. You could even pay less! To help you understand your options and the multiple benefits of refinancing, please call us at (305) 891-6500. We are here to help you reach your goals!
Want to know more about refinancing? Give us a call: (305) 891-6500.