Choosing a Refinancing Option

When you are overwhelmed with so many choices, it may seem like there are even more loan programs than borrowers! Contact us at (727) 478-2797 and we will match you with the loan program that fits you best. There are some general things to have in mind as you review your options.

Lowering Your Payments

Are achieving reduced mortgage payments and a better rate your main refinance goals? In that case, applying for a low, fixed-rate loan might be a wise option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even when interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is particularly a good idea if you don't expect to move within the next 5 years or so. However, an ARM with a initial low payment may be a smarter way to lower your payments if you plan on moving in the next few years.

Cashing Out

Is "cashing out" your primary reason for your refinance? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you'll need to apply for a loan above the remaining balance on your existing mortgage.With this goal, you'll want to need to qualify for a loan program for a bigger number than the remaining balance on your existing mortgage loan. However, if your interest rate is currently high and you have held it for quite a few years, you could be able to accomplish your goals without making your monthly payments bigger.

Consolidating Debt

Do you have other debt, perhaps with a high interest rate, that you need to consolidate? If you have the home equity to make it work, taking care of other high interest debt (such as home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars in your monthly budget.

Paying it off Faster

Are you dreaming of paying your loan off more quickly, while building up your equity more quickly? If this is your plan, the refinance mortgage can change you to a mortgage program with a shorter term, for example: a 15 year loan. Even though your mortgage payment amount will usually be increased, you will save on interest; so your equity amount will rise up faster. However, if you have had your current 30 year loan for a long time and the loan balance is rather low, you could be able to do this without increasing your monthly payment — it's even possible to save! To help you determine your options and the numerous 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: (727) 478-2797.

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