Refinancing: Which Option is for You?
The huge number of refinance options available is truly breathtaking. Call us at (941) 366-5800 and we will help you qualify for the perfect refinance loan program for your needs. What are your reasons for your refinance loan? Keeping in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan may be a good choice for you. Maybe you are currently in a mortgage with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. This kind of loan is especially a wise choice if you aren't planning a move within the next 5 years or so. However, if you do see yourself selling your home before too long, an ARM with a small initial rate may be the best way to lower your monthly payment.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity in your refinance? Maybe you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. So you want to get a loan above the remaining balance on your existing mortgage loan.So you'll You will be looking for a loan for more than the remaining balance on your existing mortgage in that case. However, if your mortgage rate is high now and you've had it for quite a few years, you could be able to reach your goals without a rise in your mortgage payment.
Do you want to pull out a portion of your equity to consolidate additional debt? Great idea! If you have a fair amount of home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a lot of cash every month.
Building up Equity More Quickly
Do you hope to build up equity more quickly, and pay off your mortgage sooner? You should consider refinancing with a shorterterm loan, often a 15-year mortgage loan. Your monthly payments will likely be more than they were with your longer term loan, but in exchange, you will pay considerably less interest and can build up equity quicker. Conversely, if your current long-term loan has a low balance remaining, and was closed a while ago, you might be able to make the move without paying more each month. To help you determine your options and the multiple benefits in refinancing, please contact us at (941) 366-5800. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call at (941) 366-5800.
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