Refinancing: Which Program is for You?
There aren't as many refinance loan options as there are borrowers, but sometimes it seems like it! We can guide you to locate the refinance program that will fit your financial situation the best. Call us at (407) 898-7559 to get started. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates come up later, unlike with your ARM, when you get a mortgage with a fixed rate, you set the low rate for the life of your loan. If you are expecting to stay in your home for about five more years, a fixed rate mortgage may be a particulary good fit for you. However, an ARM with a initial low payment could be a smarter way to lower your monthly payments if you plan on moving in the next few years.
Are you planning to cash out some of your equity with your refinance? Maybe you need to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. With this in mind, you will want to get a loan above the balance remaining on your present mortgage.In that case, you will You'll be looking for a loan for more than the current balance with your present mortgage loan in that case. You may not have an increase in your mortgage payemnt, though, if you have had your current mortgage loan for a long time, and/or your interest rate is high.
Consolidating Your Debt
Perhaps you hope to cash out some home equity (cash out) to put toward other debt. If you have the home equity for it, taking care of other high interest debt (such as home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars per month.
Paying it off Sooner
Do you plan to build up home equity more quickly, and have your mortgage paid off faster? If this is your hope, your refinance mortgage can switch you to a mortgage program with a shorter term, such as a 15 year loan. Although your monthly payment amount will probably be more, you can save on interest; so your equity amount will build up faster. But, you could be able to switch without much increase in your monthly payment if your long term loan was closed a while ago, and the balance remaining is somewhat low. You could even make it lower! To help you figure out your options and the numerous benefits in refinancing, please call us at (407) 898-7559. We can help you reach your goals!
Want to know more about refinancing? Give us a call: (407) 898-7559.