Which Refinancing Loan Program is Right for You?
There are not as many refinance loan options as there are borrowers, but it feels like it at times! Call us at (786) 262-6486 and we can work with you to qualify you for the best loan program to fit your needs. There are some general things to bear in mind while you look at the choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Even if rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you set the low rate for the term of your mortgage. A fixed-rate mortgage can be especially a good option if you don't think you'll be selling your home within the next 5 years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced mortgage payments.
Are you planning to cash out some of your equity in your refinance? It could be you're planning a special vacation; you need to pay college tuition for your child; or you plan to renovate your home. Then you will need to get a loan higher than the remaining balance on your present mortgage loan.In this case, you will want If you've had your existing mortgage for a long time and/or have a mortgage with a high interest rate, you may be able to do this without increasing your monthly payment.
Do you have other debt, perhaps with a higher interest rate, that you want to consolidate? If you have the equity in your home to make it work, taking care of other high interest debt (for example: credit cards, home equity loans, or car loans) means you can save possibly several hundred dollars per month.
Building up Equity More Quickly
Are you dreaming of paying your loan off faster, while beefing up your home equity quicker? If this is your wish, your refinance mortgage can change you to a loan program with a short, for example: a 15 year loan. The payments will likely be more than they were with your long-term mortgage loan, but the pay-off is: that you will pay quite a bit less interest and can build up equity more quickly. Conversely, if your existing longer term mortgage has a low remaining balance, and was closed a while ago, you might be able to make the switch without paying more each month. To help you determine your options and the numerous benefits in refinancing, please call us at (786) 262-6486. We are here to help you reach your goals!
Curious about refinancing your home? Call us: (786) 262-6486.