Refinancing: Which Option is for You?
When you are overwhelmed with all the choices, it may seem like there are even more refinance programs than borrowers! Call us at (941) 366-5800 and we will match you with the loan program that fits you best. There are several things to have in mind while you review the options.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a wise option for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the loan, even if interest rates rise. If you are planning to live in your home for about five more years, a fixed-rate loan may be a particulary good fit for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for your refinance? Your house needs renovating; your daughter has gone to University and needs tuition; or you are taking your family on a cruise. Then you'll need to find a loan higher than the remaining balance on your present mortgage.Then you You will want to get a loan for more than the balance remaining with your current mortgage in that case. However, if your loan interest rate is high now and you've had it for quite a few years, you may be able to accomplish your goals without making your mortgage payments increase.
Do you want to cash out some home equity to consolidate additional debt? Good plan! If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars each month.
Building up Equity Faster
Are you dreaming of paying your loan off sooner, while beefing up your home equity faster? You should consider refinancing with a short-term loan, often a 15-year mortgage. The payments will probably be higher than they were with a longer term mortgage, but in exchange, you will pay quite a bit less interest and can build up equity quicker. But, you might be able to make the change without much increase in your monthly payment if your longer term loan was closed a while ago, and the remaining balance is somewhat low. You may even make it lower! To help you determine 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 your home? Give us a call: (941) 366-5800.
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