Choosing a Refinancing Loan
When you are overwhelmed with all the choices, it may seem as if there are even more loan programs than borrowers! Call us at (407) 898-7559 and we will work with you to qualify you for the right refinance loan program for your needs. In order to review your options, you can list your goals for the refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, the best option might be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies - an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you close a fixed rate mortgage, you lock in that low rate for the life of your loan. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can especially be a good loan option. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Refinancing to Cash Out
Is your refinance goal primarily to pull out some equity for an infusion of cash? Your house needs renovating; your daughter has gone to University and needs tuition; or you are taking your family on a cruise. Then you'll want to qualify for a loan above the balance remaining on your present mortgage.In that case, you want to need to find a loan program for a bigger amount than the balance remaining on your existing mortgage. However, if your loan interest rate is high now and you've had it for a long time, you could be able to achieve your goals without making your mortgage payments rise.
Do you hold other debt, perhaps with a higher interest rate, that you need to consolidate? If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars monthly.
Paying it off Sooner
Are you dreaming of paying off your loan faster, while building up your home equity faster? If this is your wish, your refinance loan can move you to a mortgage loan program with a short, like a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your monthly payments will likely be more than you were paying. On the other hand, if your existing longer term loan has a small balance remaining, and was closed a while ago, you may be able to make the switch without paying more each month. To help you understand your options and the multiple benefits of refinancing, please call us at (407) 898-7559. We are here for you.
Want to know more about refinancing? Give us a call at (407) 898-7559.