Refinancing: Which Option is for You?
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The huge number of refinance options available to borrowers can be overwhelming. We can help you find the loan program that will fit your needs the best. Contact us at 305-598-9896 to get things started. surveying your options, you can think about your goals for the refinance.
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 ideal option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even when rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you set that low interest rate for the term of your loan. If you are not planning on moving in the near future (about 5 years), a fixed-rate mortgage can particularly be a good loan option. On the other hand, if you do see yourself selling your home before too long, an ARM mortgage with a small initial rate may be the ideal way to lower your monthly payment. As a result of refinancing, your total finance charges may be higher over the life of the loan.
Refinancing to Cash Outon Your Equity
Are you refinancing mainly to pull out some home equity for an infusion of cash? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. With this in mind, you will need to find a loan above the remaining balance of your current mortgage.With this goal, you will want If you've had your current mortgage for quite a while and/or have a loan with a high interest rate, you might\could be able to do this without making your monthly payment bigger.
Perhaps you'd like to cash out a portion of the equity (cash out) to put toward other debt. If you own any debt with steep interest (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of home equity.
Switching to a Shorter Term Loan
Are you planning to fatten up your home equity faster, and get your mortgage paid off more quickly? In that case, you want to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage program. You will be paying less interest and increasing your equity faster, although your payments will usually be more than they were. But, you may be able to switch without much increase in your monthly mortgage payment if your longer term loan was closed a while back, and the remaining balance is small. You may even pay less! To help you figure out your options and the many benefits of refinancing, please contact us at
305-598-9896. We are here to help you reach your goals!
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