Which Refinancing Loan Program is Best for You?
There are an enormous number of refinancing programs available to borrowers. Contact us at (941) 366-5800 and we can match you with the loan program that is ideal for you. What are your reasons for your refinance loan? Considering in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are getting better mortgage payments and a lower rate your main refinance goals? Then a low, fixed rate loan may be the best choice for you. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a loan in which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage loan, even when interest rates rise. This kind of loan is particularly a wise option if you don't think you'll be moving within the next 5 years or so. On the other hand, if you can see yourself selling your home in the near future, an ARM with a low initial rate may be the ideal way to reduce your monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary reason for refinancing? Maybe you need to pay for home improvements, take care of your college kid's tuition, or take your dream vacation. Then you want to find a loan higher than the remaining balance on your current mortgage.In that case, you will You'll be looking for a loan for a bigger amount than the current balance with your existing mortgage loan in this case. However, if your interest rate is currently high and you've had it for quite a few years, you could be able to reach your goals without making your mortgage payments increase.
Maybe you hope to pull out some of the home equity (cash out) to put toward other debt. If you have the home equity to make it work, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you may be able to save several hundred dollars in your monthly budget.
Paying it off Faster
Do you hope to build up home equity quicker, and have your mortgage paid off faster? If this is your plan, the refinance can switch you to a mortgage program with a shorter term, like a 15 year loan. Although your monthly payment amount will probably be more, you can save on interest; so your equity will rise up faster. However, if you have held your current 30 year mortgage loan for a long time and the remaining balance is somewhat low, you might be able to do this without raising your mortgage payment — it's even possible to save! To help you understand your options and the numerous benefits in refinancing, please contact us at (941) 366-5800. We are here for you.
Want to know more about refinancing your home? Give us a call at (941) 366-5800.
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