Choosing a Refinancing Program
When you are overwhelmed with so many options, it may seem like there are even more refinance loan programs than borrowers! Call us at (786) 262-6486 and we can match you with the refinance program that is ideal for your needs. surveying your options, you can list your goals for the refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, your best option could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your mortgage loan, even when interest rates rise. This kind of loan can be particularly a wise option if you don't think you'll be selling your home within the next five years or so. On the other hand, if you can see yourself moving in the near future, an ARM with a low initial rate might be the best way to bring down your monthly payments.
Is your refinance goal mainly to "cash out" some home equity? Your house needs updating; your daughter has gone to college and needs tuition money; or you have a special family vacation planned. Then you want to look for a loan above the remaining balance of your current mortgage loan.In this case, you need You might not increase your monthly payemnt, though, if you've had your existing loan for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to cash out some equity to consolidate other debt? Yes you can! If you hold any debt with steep interest (like credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have the right amount of home equity.
Getting a Shorter Term Loan
Do you need to build up equity quicker, and have your mortgage paid off more quickly? In that case, you want to find out about refinancing to a short term mortgage - like a fifteen-year mortgage loan. You will be paying less interest and increasing your equity more quickly, although your monthly payments will usually be more than you have been paying. On the other hand, if your existing longer term loan has a small balance remaining, and was closed a while ago, you may even be able to make the change without paying more each month. To help you understand your options and the multiple benefits in refinancing, please call us at (786) 262-6486. We will help you reach your goals!
Want to know more about refinancing? Give us a call at (786) 262-6486.