Choosing a Refinancing Option
When you are overwhelmed with all the choices, it may seem like there are even more loan programs than borrowers! Call us at (941) 366-5800 and we can match you with the refinance loan program that fits you best. In order to review your choices, you can list your goals for the refinance.
Making Your Payments Lower
Are getting reduced monthly payments and an improved rate your main reasons for refinancing? In that case, getting a low, fixed-rate loan may be a wise choice for you. Perhaps you are presently in a loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies - an adjustable rate mortgage (ARM). Different that 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. If you are planning to stay in your home for at least five more years, a fixed-rate loan may be a particulary good fit for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced payments.
Is "cashing out" your primary purpose for refinancing? Your house needs new carpet; your daughter has gone to college and needs tuition; or you are planning a special vacation. In this case, you'll want to apply for a loan higher than the remaining balance on your existing mortgage.So you'll want to qualify for a loan program for a bigger amount than the balance remaining on your current mortgage. However, if your mortgage rate is high now and you've had it for quite a few years, you may be able to accomplish your goals without a rise in your mortgage payment.
Do you want to cash out a portion of your home equity to consolidate additional debt? Yes you can! If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (for example: credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars each month.
Paying it off Faster
Are you dreaming of paying off your loan more quickly, while beefing up your home equity more quickly? If this is your hope, the refinance loan can move you to a loan program with a short, like a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your mortgage payments will usually be bigger than they were. Conversely, if your existing longer term mortgage loan has a low 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 figure out your options and the numerous benefits of refinancing, please contact us at (941) 366-5800. We are here for you.
Want to know more about refinancing? Give us a call: (941) 366-5800.
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