Choosing a Refinancing Loan
When you are overwhelmed with so many options, it may seem as if there are even more loan programs than applicants! Contact us at 305-967-7200 and we can work with you to qualify you for the perfect refinance loan program to fit your financial situation. surveying your choices, you can consider what you want to achieve with your refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan could be a wise option for you. Maybe you are now in a loan with a high, fixed interest rate, or a loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are expecting to live in your home for at least five more years, a loan with a fixed rate may be a particulary good option for you. However, an ARM with a low intitial payment could be a smarter way to reduce your payments if you expect to move in the next few years.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? Perhaps you need to make home improvements, take care of your college kid's tuition, or take your family on a dream vacation. Then you need to get a loan above the balance remaining of your existing mortgage loan.In that case, you will want to need to qualify for a loan for a higher amount than the remaining balance on your existing mortgage. You may not have an increase in your mortgage payemnt, though, if you have had your existing mortgage loan for a number of years, and/or your loan interest rate is high.
Do you hold other debt, maybe with a higher interest rate, that you'd like to consolidate? If you hold some debt with high interest (like credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Building up Equity Faster
Are you dreaming of paying your loan off sooner, while beefing up your equity quicker? If this is your wish, the refinance loan can change you to a loan program with a shorter term, like a 15 year loan. Your payments will likely be more than they were with the long-term mortgage, but in exchange, you will pay considerably less interest and will build up equity quicker. But, you may be able to switch without much increase in your monthly payment if your long term loan was closed a while ago, and the remaining balance is low. You may even pay less! To help you understand your options and the many benefits of refinancing, please contact us at 305-967-7200. We are here for you.
Want to know more about refinancing your home? Give us a call at 305-967-7200.