Refinancing: Which Program is for You?
There are an enormous number of refinancing options available to borrowers. Contact us at 305-967-7200 and we can match you with the refinance loan program that fits you best. In the interest of looking at your choices, you can list your goals for the refinance.
Lowering Your Payments
Are getting better monthly payments and an improved rate your main reasons for refinancing? If so, the best choice may be a low fixed-rate loan. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — with which the rate of interest can vary. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage, even as interest rates rise. This kind of loan is particularly a wise option if you aren't expecting a move within the next 5 years or so. However, an ARM with a low intitial payment could be a better way to reduce your payments if you expect to move in the next few years.
Is your refinance goal primarily to pull out some of your home equity for an infusion of cash? It could be you need to make home improvements, pay your child's college tuition bill, or go on a dream vacation. Then you'll need to qualify for a loan for more than the balance remaining on your present mortgage.Then you will You will need to find a loan for more than the remaining balance on your present mortgage loan in that case. If you've had your existing mortgage loan for a long time and/or have a mortgage with a high interest rate, you may be able to do this without increasing your monthly payment.
Perhaps you hope to cash out a portion of the home equity (cash out) to put toward other debt. If you have built up some home equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) may help save you a chunk of cash every month.
Building up Equity More Quickly
Are you dreaming of paying your loan off faster, while beefing up your equity quicker? You should consider refinancing with a shorterterm loan, like a 15-year mortgage loan. You will be paying less interest and increasing your equity more quickly, even though your mortgage payments will usually be bigger than you have been paying. On the other hand, if your existing longer term mortgage has a small remaining balance, and was closed a number of years ago, you may even be able to make the change without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please call us at 305-967-7200. We are here for you.
Curious about refinancing your home? Give us a call at 305-967-7200.