Refinancing: Which Loan Program is for You?
When you are overwhelmed with so many options, it may seem like there are even more refinance loan programs than borrowers! We can help you choose the loan program that can fit your situation the best. Call us at 305-967-7200 to get things started. 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 you refinancing primarily to lower your rate and monthly payments? In that case, your best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. This can be particularly a wise idea if you don't plan to sell your home within the next 5 years or so. However, an ARM with a initial low payment may be a wiser way to lower your mortgage payments if you plan on moving in the next few years.
Getting Out some Cash
Is your refinance goal primarily to "cash out" some home equity? It could be you want to make home improvements, pay your child's college tuition bill, or go on a dream vacation. Then you want to get a loan above the balance remaining on your present mortgage loan.Then you will want to need to get a loan program for a higher amount than the balance remaining on your present mortgage loan. However, if your loan interest rate is high now and you've held it for a long time, you may be able to accomplish your goals without an increase in your mortgage payment.
Do you want to cash out a portion of your equity to consolidate additional debt? Yes you can! If you hold some higher interest debts (like credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Paying it off Faster
Are you wanting to fatten your equity faster, and pay off your mortgage loan more quickly? Then, you'll need to look into refinancing to a short term mortgage - like a fifteen-year mortgage loan. You will be paying less interest and growing your home equity more quickly, although your payments will likely be more than you were paying. But, you might be able to switch without a higher monthly payment if your longer term mortgage loan was closed a while back, and the remaining balance is low enough. You could even pay less! To help you figure out your options and the numerous benefits in refinancing, please contact us at 305-967-7200. We are here to help you reach your goals!
Want to know more about refinancing? Call us: 305-967-7200.