Which Refinancing Loan Program is Best for You?
The number of refinance options available to borrowers can be overwhelming. We can guide you to choose the loan program that will fit your situation the best. Call us at (786) 262-6486 to begin the process. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a good choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can particularly be a great choice. On the other hand, if you do see yourself selling your home in the near future, an ARM with a low initial rate could be the best way to lower your monthly payments.
Getting Out some Cash
Are you refinancing mainly to pull out some home equity for an infusion of cash? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you want to apply for a loan higher than the balance remaining on your existing mortgage loan.Then you will want However, if your mortgage rate is currently high and you've held it for a long time, you could be able to achieve your goals without a rise in your mortgage payment.
Do you want to pull out a portion of your equity to consolidate additional debt? Great idea! If you have some higher interest debts (like credit cards or car loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Are you dreaming of paying off your loan sooner, while building up your equity faster? If this is your plan, your refinance can switch you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and increasing your equity faster, although your payments will likely be more than they were. But, you may be able to switch without a higher monthly mortgage payment if your longer term loan was closed a while back, and the balance remaining is small. You may even pay less! To help you understand your options and the numerous benefits in refinancing, please call us at (786) 262-6486. We are here for you.
Curious about refinancing? Give us a call: (786) 262-6486.