Refinancing: Which Option is for You?
There are a huge number of refinancing options available to borrowers. Contact us at (941) 366-5800 and we can work with you to qualify you for the best refinance loan for your needs. What are your goals for your refinance loan? Keeping in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are getting better payments and a lower rate your main reasons for refinancing? In that case, a good choice might be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even when rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set the low interest rate for the term of your mortgage. If you expect to stay in your home for about five more years, a fixed rate mortgage may be a particulary good option for you. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate to get lower mortgage payments.
Are you wanting to cash out some of your home equity with your refinance? Maybe you want to make home improvements, pay your child's college tuition bill, or take your dream vacation. In this case, you will need to get a loan higher than the remaining balance of your current mortgage.In that case, you want to need to qualify for a loan for a bigger number than the balance remaining on your present mortgage. You may not increase your mortgage payemnt, though, if you've had your existing loan for a while, and/or your interest rate is high.
Do you want to pull out some equity to consolidate other debt? Excellent idea! If you have the equity in your home to make it work, paying off other high interest debt (like credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars monthly.
Paying it off Sooner
Are you wanting to fatten up your equity faster, and pay your mortgage loan off sooner? You should consider refinancing to a short-term loan, such as a 15-year mortgage. The monthly payments will probably be more than with a longer term loan, but the pay-off is: that you will pay quite a bit less interest and can build up equity quicker. On the other hand, if your current long-term mortgage has a small remaining balance, and was closed a number of years ago, you may be able to make the change without paying more each month. To help you determine your options and the many benefits in refinancing, please call us at (941) 366-5800. We would love to help you reach your goals!
Curious about refinancing? Give us a call at (941) 366-5800.
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