Which Refinancing Loan Program is Best for You?
When you are overwhelmed with all the options, it may seem as if there are even more refinance loan programs than borrowers! Contact us at (941) 366-5800 and we can match you with the loan program that best fits you. There are some general questions to ask yourself while you consider the choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even when rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you set the low interest rate for the life of your mortgage. A fixed-rate mortgage is especially a wise idea if you don't think you will sell your home within the next 5 years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Are you hoping to cash out some of your home equity with your refinance? Maybe you need to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. With this in mind, you want to apply for a loan for more than the remaining balance of your current mortgage loan.So you will want If you've had your current mortgage for a long time and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Perhaps you'd like to pull out some of the equity (cash out) to put toward other debt. If you have built up some equity, paying off other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) may be able to save you a lot of money every month.
Building up Equity More Quickly
Are you wanting to fatten your home equity faster, and get your mortgage paid off sooner? Then, you'll need to find out about refinancing to a short term mortgage loan - like a fifteen-year loan. Your payments will likely be higher than they were with the long-term mortgage, but the pay-off is: that you will pay substantially less interest and can build up equity quicker. But, you could be able to make the change without much increase in your monthly payment if your long term mortgage was closed a while ago, and the remaining balance is low. You may even make it lower! To help you figure out your options and the many benefits in refinancing, please contact us at (941) 366-5800. We are here to help you reach your goals!
Want to know more about refinancing? Call us: (941) 366-5800.
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