Refinancing: Which Option is for You?
There are not as many refinance loan programs as there are applicants, but at times it seems like it! Contact us at (941) 366-5800 and we will match you with the refinance program that is best for you. What are your goals for your refinance loan? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right loan program for you. Perhaps you currently have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even when rates get higher later, unlike with your ARM, when you close a fixed-rate mortgage, you set that low interest rate for the term of your loan. If you are not planning on moving in the near future (about 5 years), a fixed-rate mortgage can particularly be a good loan option. However, an ARM with a low intitial payment could be a smarter way to reduce your monthly payments if you see yourself moving within the near future.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? It could be you're planning a special vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. So you'll want to find a loan above the balance remaining on your current mortgage.So you'll You will be looking for a loan for a bigger amount than the current balance with your current mortgage in that case. You may not increase your mortgage payemnt, however, if you've had your current mortgage loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to pull out some home equity to consolidate additional debt? Yes you can! If you have the equity in your home for it, paying off other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars in your monthly budget.
Paying it off Faster
Are you hoping to fatten your home equity faster, and get your mortgage paid off more quickly? In that case, you'll want to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. Although your mortgage payment amount will usually be more, you will save on interest; so your home equity will rise up faster. But, you could be able to switch without much increase in your monthly mortgage payment if your long term mortgage was closed a while ago, and the remaining balance is somewhat low. You could even make it lower! To help you determine your options and the multiple benefits in refinancing, please contact us at (941) 366-5800. We are here for you.
Curious about refinancing your home? Call us at (941) 366-5800.
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