Which Refinancing Program is Right for You?
The huge number of refinance options available can be overwhelming. Contact us at (727) 478-2797 and we can match you with the refinance loan program that is best for you. There are several things to have in mind while you consider the choices.
Lowering Your Payments
Are getting better mortgage payments and an improved rate your main reasons for refinancing? If so, your best option may be a low fixed-rate loan. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in that low rate for the term of your loan. A fixed-rate mortgage can be especially a wise idea if you aren't expecting a move within the next 5 years or so. On the other hand, if you can see yourself selling your home before too long, an ARM with a small initial rate could be the best way to lower your monthly payment.
Refinancing to Cash Out
Is your refinance goal mainly to "cash out" some home equity? Your home needs improvements; your daughter has been accepted to University and needs tuition; or you are taking your family on a cruise. In this case, you'll need to get a loan higher than the balance remaining on your existing mortgage loan.With this goal, you want to find a loan for a bigger number than the remaining balance on your present mortgage loan. However, if your mortgage rate is high now and you have held it for quite a few years, you may be able to achieve your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you want to cash out some equity to consolidate other debt? Great idea! If you hold some debt with high interest (like credit cards or car loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have enough equity.
Paying it off Faster
Are you wanting to fatten up your equity faster, and pay your mortgage loan off more quickly? You should consider refinancing to a short-term loan, such as a 15-year mortgage. The payments will likely be more than with the longer term mortgage, but in exchange, you will pay considerably less interest and will build up equity quicker. Conversely, if your existing long-term mortgage has a low balance remaining, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please call us at (727) 478-2797. We can help you reach your goals!
Curious about refinancing? Give us a call at (727) 478-2797.
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