Which Refinancing Loan Program is Right for You?
When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than applicants! We can guide you to select the refinance loan program that will fit your financial situation the best. Call us at (407) 898-7559 to get things started. What do you hope to achieve with refinancing? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the best option for you. Maybe you now have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — in which the rate of interest varies. Even if interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great loan option. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Getting Out some Cash
Are you planning to cash out some of your equity in your refinance? Your house needs renovating; your son has gone to University and needs tuition; or you are planning a special vacation. In this case, you will need to find a loan for more than the balance remaining on your existing mortgage loan.So you'll You will want to apply for a loan for more than the remaining balance of your existing home loan in that case. If you've had your existing mortgage loan for a long time and/or have a loan with high interest, you might\could be able to do this without increasing your mortgage payment.
Do you want to pull out some home equity to consolidate other debt? Great plan! If you have the home equity to make it work, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars monthly.
Paying it off Sooner
Are you dreaming of paying off your loan more quickly, while building up your home equity more quickly? In that case, you'll need to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. You will be paying less interest and growing your home equity faster, even though your monthly payments will likely be higher than you have been paying. But, you could be able to switch without much increase in your monthly mortgage payment if your longer term mortgage was closed a while ago, and the remaining balance is low enough. You could even pay less! To help you figure out your options and the multiple benefits of refinancing, please contact us at (407) 898-7559. We would love to help you reach your goals!
Curious about refinancing? Call us at (407) 898-7559.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.