Refinancing: Which Loan Program is for You?
There aren't as many loan program choices as there are applicants, but sometimes it seems like it! Contact us at (727) 478-2797 and we will match you with the refinance program that best fits you. What are your reasons for your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a good option may be a low fixed-rate loan. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — with which the interest rate can vary. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage loan, even if interest rates rise. If you aren't planning a move in the near future (about five years), a fixed rate mortgage loan can especially be a good loan option. On the other hand, if you do see yourself selling your home in the near future, an ARM mortgage with a small initial rate may be the best way to bring down your monthly payment.
Refinancing to Cash Out
Is "cashing out" your primary reason for refinancing? Perhaps you're going on a much needed vacation; you need to pay college tuition for your child; or you are planning some home improvements. With this in mind, you want to get a loan higher than the balance remaining on your existing mortgage loan.In that case, you want to need to qualify for a loan for a bigger amount than the balance remaining on your current mortgage. You may not increase your monthly payemnt, though, if you have had your current mortgage loan for a while, and/or your interest rate is high.
Maybe you'd like to cash out some of the equity (cash out) to put toward other debt. If you have the home equity for it, paying off other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars each month.
Building up Equity More Quickly
Do you want to build up home equity quicker, and pay off your mortgage sooner? Consider refinancing to a short-term loan, like a 15-year mortgage loan. Although your mortgage payments will usually be more, you will be paying less interest; so your equity amount will rise up faster. Conversely, if your current longer term loan has a small balance remaining, and was closed a while ago, you may even be able to make the change without paying more each month. To help you understand your options and the many benefits in refinancing, please call us at (727) 478-2797. We are here for you.
Want to know more about refinancing? Give us a call at (727) 478-2797.
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