Choosing a Refinancing Option
The number of refinance options available to borrowers can be overwhelming. Contact us at (727) 478-2797 and we will match you with the refinance loan program that fits you best. In the interest of looking at your choices, you can consider what you want to achieve with your refinance.
Lowering Your Payments
Are achieving better payments and an improved rate your main reasons for refinancing? In that case, getting a low, fixed-rate loan may be a good option for you. Perhaps you currently have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even as interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can particularly be a great choice. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Refinancing to Cash Out
Are you refinancing mainly to pull out some equity for an infusion of cash? Maybe you want to pay for home improvements, take care of your college kid's tuition, or take your family on a dream vacation. Then you want to get a loan for more than the balance remaining on your existing mortgage loan.With this goal, you You will need to apply for a loan for more than the balance remaining of your present mortgage in that case. You might not have an increase in your monthly payemnt, though, if you've had your existing mortgage for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you hold some higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of equity.
Building up Equity Faster
Are you planning to fatten up your equity faster, and pay off your mortgage loan more quickly? Then, you'll need to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. Even though your mortgage payments will likely be increased, you can be paying less interest; so your equity amount will build up faster. On the other hand, if your existing long-term mortgage loan has a small remaining balance, and was closed a while ago, you may even be able to make the move without paying more each month. To help you determine your options and the many benefits in refinancing, please contact us at (727) 478-2797. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call at (727) 478-2797.