Refinancing: Which Loan Program is for You?
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The number of refinance options available can be overwhelming. Contact us at 954-486-6000 and we can help you qualify for the perfect refinance program to fit your financial needs. There are several questions to ask yourself as you consider the choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in the low rate for the life of your mortgage. This kind of loan can be particularly a good choice if you don't think you'll be selling your home within the next five years or so. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get lower monthly payments.
Getting Out some Cash
Is your refinance goal mainly to pull out some home equity for an infusion of cash? Perhaps you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. In this case, you need to get a loan for more than the balance remaining on your present mortgage.With this goal, you'll need You may not have an increase in your mortgage payment, though, if you've had your existing loan for a while, and/or your interest rate is high.
Do you have other debt, perhaps with a high interest rate, that you want to consolidate? If you have the equity in your home to make it work, paying off other high interest debt (like credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars in your budget each month.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your equity quicker? If this is your plan, the refinance can switch you to a loan program with a short, such as a 15 year loan. You will be paying less interest and increasing your equity faster, even though your mortgage payments will likely be bigger than they were. Conversely, if your existing long-term mortgage loan has a low balance remaining, and was closed a while ago, you could be able to make the switch without paying more each month. To help you determine your options and the numerous benefits of refinancing, please call us at 954-486-6000. We are here for you.