Refinancing: Which Option is for You?
Even though it may seem like it sometimes, there are not as many refinance options as there are applicants! Contact us at (407) 898-7559 and we will match you with the refinance loan program that best fits you. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you begin your decision process.
Making Your Payments Lower
Are getting reduced monthly payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be the ideal choice for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about five years), a fixed rate mortgage loan can particularly be a great loan option. However, if you do see yourself selling your home before too long, an ARM with a low initial rate may be the ideal way to lower your monthly payments.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity in your refinance? It could be you need to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. Then you'll want to find a loan higher than the balance remaining on your existing mortgage.So you'll You will be looking for a loan for a higher amount than the current balance of your existing home loan in this 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 reach your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you have other debt, perhaps with a high interest rate, that you'd like to consolidate? If you have a fair amount of home equity, paying toward other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a lot of cash every month.
Building up Equity Faster
Are you hoping to fatten your equity faster, and pay your mortgage loan off sooner? If this is your plan, your refinance mortgage can change you to a loan program with a short, such as a 15 year loan. The monthly payments will likely be more than they were with your longer term mortgage, but in exchange, that you will pay substantially less interest and can build up equity more quickly. But, you might be able to switch without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the balance remaining is small. You could even pay less! To help you figure out your options and the multiple benefits in refinancing, please contact us at (407) 898-7559. We are here for you.
Want to know more about refinancing? Call us: (407) 898-7559.