Which Refinancing Option is Right for You?
When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than borrowers! Contact us at (407) 898-7559 and we will work with you to qualify you for the perfect refinance program for your financial situation. There are some general things to bear in mind while you consider your options.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then your best option may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in that low rate for the term of your mortgage. If you are expecting to live in your home for at least five more years, a fixed rate mortgage may be an especially good choice for you. On the other hand, if you can see yourself moving in the near future, an adjustable rate mortgage with a low initial rate could be the best way to bring down your monthly payment.
Is "cashing out" your primary reason for refinancing? It could be you want to pay for home improvements, take care of your college kid's tuition, or take a cruise. Then you need to look for a loan above the remaining balance of your present mortgage.In that case, you want However, if your interest rate is high now and you have held it for a long time, you could be able to accomplish your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you hold other debt, perhaps with a high interest rate, that you'd like to consolidate? If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars in your budget each month.
Paying it off Sooner
Are you wanting to fatten up your equity faster, and pay your mortgage loan off more quickly? Consider refinancing to a short-term loan, often a 15-year mortgage loan. You will be paying less interest and growing your equity faster, even though your payments will usually be higher than they were. But, you could be able to switch without a higher monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is low enough. You could even pay less! To help you determine your options and the many benefits in refinancing, please call us at (407) 898-7559. We are here for you.
Want to know more about refinancing your home? Call us: (407) 898-7559.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.