Which Refinancing Loan Program is Right for You?

There are not as many loan program choices as there are applicants, but it feels like it at times! Call us at (727) 743-1620 and we can work with you to qualify you for the right refinance program for your financial situation. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.

Lowering Your Payments

Is your refinance primarily to lower your rate and monthly payments? Then a good option may be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for about five more years, a fixed rate loan may be an especially good option for you. On the other hand, if you do see yourself selling your home within several years, an ARM with a low initial rate may be the ideal way to lower your monthly payment.

Cashing Out

Is your refinance goal mainly to "cash out" some home equity? Your house needs renovating; your daughter has gone to college and needs tuition; or you have a special family vacation planned. Then you will need to find a loan higher than the balance remaining on your current mortgage.So you will You'll be looking for a loan for a bigger amount than the current balance of your present home loan in that case. You may not have an increase in your monthly payemnt, however, if you have had your current mortgage for a long time, and/or your interest rate is high.

Debt Consolidation

Do you hold other debt, maybe with high interest, that you'd like to consolidate? If you have enough home equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a chunk of money every month.

Building up Equity Faster

Do you want to build up equity more quickly, and have your mortgage paid off more quickly? Consider refinancing to a short-term loan, like a 15-year mortgage loan. The mortgage payments will likely be higher than with your longer term mortgage, but the pay-off is: you will pay quite a bit less interest and will build up equity quicker. On the other hand, if your existing longer term mortgage has a low remaining balance, and was closed a while ago, you may be able to make the change without paying more each month. To help you figure out your options and the many benefits in refinancing, please contact us at (727) 743-1620. We can help you reach your goals!

Want to know more about refinancing? Give us a call at (727) 743-1620.

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