Choosing a Refinancing Option
Even though it may seem like it sometimes, there are not as many refinance loan options as there are borrowers! We can help you locate the loan program that can fit your financial situation the best. Contact us at (727) 743-1620 to get things started. What are your goals for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the right loan program for you. Maybe you are now in a mortgage with a high, fixed interest rate, or a loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the term of your mortgage. This can be especially a good idea if you don't think you'll be selling your home within the next 5 years or so. However, an ARM with a initial low payment could be a better way to reduce your mortgage payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? Maybe you're dreaming of a cruise; you have to pay college tuition for your child; or you are updating your kitchen. With this in mind, you'll want to qualify for a loan higher than the remaining balance on your current mortgage.With this goal, you'll You'll be looking for a loan for a bigger amount than the remaining balance on your current mortgage in that case. If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.
Consolidating Your Debt
Maybe you hope to cash out some of the home equity (cash out) to put toward other debt. If you hold any higher interest debts (like credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of equity.
Paying it off Sooner
Are you wanting to fatten up your equity faster, and pay your mortgage loan off sooner? Then, you'll need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. Although your monthly payments will probably be more, you can save on interest; so your equity amount will build up faster. But, you may be able to make the change without a higher monthly payment if your long term mortgage loan was closed a while back, and the remaining balance is small. You could even make it lower! To help you determine your options and the numerous benefits in refinancing, please call us at (727) 743-1620. We are here for you.
Curious about refinancing? Call us at (727) 743-1620.