Refinancing: Which Program is for You?
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There are a huge number of refinancing options available to borrowers. We can help you choose the refinance program that can fit your situation the best. Contact us at 561.775.2724 to get started. What do you hope to achieve with refinancing? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage loan, even as interest rates rise. If you are planning to stay in your home for at least five more years, a loan with a fixed rate may be a particularly good choice for you. However, if you can see yourself moving before too long, an ARM with a small initial rate might be the ideal way to lower your monthly payment.
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Maybe you want to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. In this case, you need to apply for a loan for more than the remaining balance of your current mortgage loan.In that case, you want to qualify for a loan for a bigger number than the balance remaining on your existing mortgage loan. However, if your mortgage rate is high now and you've held it for a long time, you could be able to accomplish your goals without an increase in your mortgage payment.
Do you want to pull out some equity to consolidate additional debt? Yes you can! If you have a fair amount of home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a lot of cash each month.
Paying it off Sooner
Are you dreaming of paying your loan off more quickly, while beefing up your home equity more quickly? You should consider refinancing to a shorterterm loan, like a 15-year mortgage. Although your monthly payments will likely be increased, you can save on interest; so your equity amount will rise up faster. But, you could be able to make the change without a higher monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the balance remaining is small. You may even pay less! To help you understand your options and the multiple benefits of refinancing, please call us at 561.775.2724. We are here for you.
Curious about refinancing your home? Call us at 561.775.2724.