Refinancing: Which Program is for You?
There are a huge number of refinancing programs available to borrowers. We can help you select the refinance loan program that will fit your financial situation the best. Contact us at 305-967-7200 to get things started. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are achieving better monthly payments and a better rate your main refinance goals? In that case, a good choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you aren't 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 smarter way to lower your mortgage payments if you expect to move in the near future.
Is your refinance goal primarily to pull out some home equity for an infusion of cash? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. With this in mind, you will need to get a loan above the remaining balance of your existing mortgage loan.Then you'll want If you've had your current mortgage for quite a while and/or have a loan whose interest rate is high, you may be able to do this without increasing your mortgage payment.
Maybe you'd like to pull out a portion of the equity in your home (cash out) to put toward other debt. If you have some debt with steep interest (such as credit cards or vehicle loans), you might 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.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan more quickly, while beefing up your equity more quickly? If this is your hope, the refinance loan can move you to a mortgage program with a shorter term, like a 15 year loan. You will be paying less interest and increasing your equity faster, even though your monthly payments will likely be bigger than they were. However, if you've had your current 30 year loan for a number of years and the loan balance is relatively low, you may be do this without increasing your mortgage payment — it's even possible to save! To help you understand your options and the many benefits in refinancing, please call us at 305-967-7200. We can help you reach your goals!
Curious about refinancing your home? Call us at 305-967-7200.