Refinancing: Which Option is for You?
When you are overwhelmed with all the choices, it may seem like there are even more loan programs than borrowers! Call us at 305-967-7200 and we will work with you to qualify you for the best refinance loan to fit your situation. What are your reasons for refinancing? Keeping in mind the following will help you narrow your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan may be a good choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the mortgage loan, even when interest rates rise. This kind of loan is particularly a good option if you don't plan to sell your home within the next 5 years or so. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower payments.
Are you refinancing primarily to "cash out" some home equity? Maybe you're dreaming of a cruise; you need to pay college tuition for your child; or you are planning some home improvements. With this in mind, you'll need to get a loan higher than the remaining balance of your existing mortgage loan.So you'll want to need to qualify for a loan for a higher number than the remaining balance on your present mortgage loan. If you've had your current mortgage for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.
Do you want to pull out some of your equity to consolidate other debt? Excellent idea! If you have the equity in your home for it, paying off other high interest debt (for example: credit cards, home equity loans, or car loans) means you can possible save several hundred dollars monthly.
Switching to a Shorter Term Loan
Do you want to build up equity more quickly, and have your mortgage paid off faster? You should consider refinancing to a short-term loan, such as a 15-year mortgage. You will be paying less interest and growing your equity faster, although your payments will likely be higher than you were paying. However, if you've had your current 30 year loan for a long time and the loan balance is rather low, you could be able to do this without raising your monthly payment — it's even possible to save! To help you understand your options and the many benefits of refinancing, please call us at 305-967-7200. We are here to help you reach your goals!
Curious about refinancing? Call us at 305-967-7200.