Which Refinancing Loan Program is Right for You?
There are not as many refinance loan programs as there are borrowers, but it seems like it sometimes! Contact us at (727) 743-1620 and we can match you with the refinance program that fits you best. There are some general questions to ask yourself as you consider your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a good option may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even when interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. This is especially a wise option if you aren't planning a move within the next five years or so. However, an ARM with a initial low payment could be a wiser way to reduce your mortgage payments if you expect to move in the near future.
Refinancing to Cash Out
Are you planning to cash out some of your home equity in your refinance? It could be you need to make home improvements, pay your child's college tuition bill, or go on a dream vacation. Then you want to qualify for a loan higher than the balance remaining of your current mortgage.So you'll need However, if your loan interest rate is currently high and you've had it for quite a few years, you may be able to reach your goals without making your mortgage payments higher.
Consolidating Your Debt
Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you have built up some home equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a chunk of money each month.
Building up Equity Faster
Are you wanting to fatten your home equity faster, and get your mortgage paid off more quickly? You should consider refinancing to a shorterterm loan, often a 15-year mortgage loan. Your payments will likely be more than with a longer term mortgage, but in exchange, you will pay substantially less interest and will build up equity quicker. But, you might be able to switch without a higher monthly payment if your long term mortgage was closed a while back, and the remaining balance is small. You could even make it lower! To help you figure out your options and the numerous benefits of refinancing, please contact us at (727) 743-1620. We are here to help you reach your goals!
Want to know more about refinancing? Call us: (727) 743-1620.