Refinancing: Which Program is for You?
When you are overwhelmed with all the choices, it may seem as if there are even more refinance loan programs than borrowers! We can guide you to locate the refinance program that can fit your situation the best. Call us at (786) 262-6486 to get things started. What are your goals for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the right choice for you. Maybe you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the interest rate varies. Even as interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are expecting to live in your home for about five more years, a fixed rate mortgage may be a particulary good choice for you. On the other hand, if you do see yourself moving within the next few years, an ARM mortgage with a small initial rate may be the ideal way to reduce your monthly payments.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? Your home needs renovating; your daughter has gone to University and needs tuition; or you have a special family vacation planned. So you need to find a loan for more than the remaining balance on your current mortgage loan.In that case, you will want to find a loan program for a bigger amount than the balance remaining on your existing mortgage loan. However, if your loan interest rate is currently high and you have held it for quite a few years, you may be able to achieve your goals without making your monthly payments increase.
Do you hold other debt, maybe with a higher interest rate, that you want to consolidate? If you have any debt with steep interest (such as credit cards or car loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of equity.
Switching to a Shorter Term Loan
Do you hope to build up home equity quicker, and pay off your mortgage sooner? Consider refinancing to a shorterterm loan, like a 15-year mortgage loan. Although your mortgage payments will usually be increased, you can save on interest; so your equity amount will build up faster. But, you might be able to make the change without a bigger monthly payment if your long term mortgage loan was closed a while ago, and the balance remaining is low. You may even make it lower! To help you figure out your options and the numerous benefits in refinancing, please contact us at (786) 262-6486. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call at (786) 262-6486.