Refinancing: Which Option is for You?
The huge number of refinance options available can be overwhelming. Call us at (727) 743-1620 and we will match you with the refinance program that is ideal for your needs. There are some general questions to ask yourself while you look at your options.
Lowering Your Payments
Are achieving reduced payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. Perhaps you now hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — in which the rate of interest varies. Even if rates rise later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low interest rate for the term of your loan. If you aren't expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise option. However, if you can see yourself selling your home within several years, an adjustable rate mortgage with a small initial rate might be the ideal way to lower your monthly payments.
Refinancing to Cash Out
Is your refinance goal primarily to "cash out" some home equity? Maybe you're dreaming of a cruise; you need to pay college tuition for your child; or you are planning some home improvements. In this case, you will need to find a loan above the remaining balance of your current mortgage.So you need However, if your loan interest rate is currently high and you have held it for quite a few years, you could be able to achieve your goals without making your monthly payments higher.
Perhaps you'd like to pull out some equity (cash out) to use toward other debt. If you have the equity in your home for it, taking care of other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars in your monthly budget.
Building up Equity More Quickly
Do you need to build up home equity more quickly, and have your mortgage paid off sooner? If this is your goal, the refinance can change you to a loan program with a short, such as a 15 year loan. Your monthly payments will likely be higher than they were with the long-term mortgage loan, but in exchange, that you will pay quite a bit less interest and will build up equity quicker. However, if you have held your current thirty-year mortgage for a number of years and the remaining balance is somewhat low, you might be able to do this without increasing your mortgage payment — you could even be able to save! To help you understand your options and the multiple benefits of refinancing, please call us at (727) 743-1620. We would love to help you reach your goals!
Curious about refinancing your home? Call us: (727) 743-1620.