Refinancing: Which Program is for You?
The number of refinance options available can be overwhelming. Contact us at (727) 743-1620 and we can help you qualify for the perfect refinance loan program for your situation. There are some general questions to ask yourself as you review your options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — in which the interest rate can vary. Even if rates come up later, unlike with your ARM, when you close a fixed-rate mortgage, you set that low interest rate for the life of your mortgage. If you are expecting to stay in your home for at least five more years, a fixed rate loan may be a particulary good fit for you. On the other hand, if you can see yourself moving before too long, an ARM mortgage with a small initial rate may be the ideal way to bring down your monthly payment.
Refinancing to Cash Out
Are you wanting to cash out some of your equity in your refinance? Your home needs new carpet; your son has gone to University and needs tuition; or you are planning a special vacation. So you need to find a loan higher than the remaining balance of your current mortgage.In that case, you want to find a loan for a bigger number than the remaining balance on your current mortgage. If you've had your current mortgage for quite a while and/or have a loan whose interest rate is high, you might\could be able to do this without increasing your monthly payment.
Do you want to pull out some of your home equity to consolidate additional debt? Great plan! If you have some higher interest debts (such as credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have the right amount of equity.
Switching to a Shorter Term Loan
Do you want to build up home equity quicker, and have your mortgage paid off more quickly? If this is your plan, your refinance mortgage can change you to a mortgage program with a short, such as a 15 year loan. You will be paying less interest and increasing your home equity faster, even though your monthly payments will usually be more than you have been paying. But, you may be able to make the change without much increase in your monthly payment if your long term mortgage loan was closed a while ago, and the remaining balance is somewhat low. You may even make it lower! To help you determine your options and the multiple benefits in refinancing, please call us at (727) 743-1620. We can help you reach your goals!
Want to know more about refinancing? Give us a call: (727) 743-1620.