Refinancing: Which Loan Program is for You?
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When you are overwhelmed with all the choices, it may seem as if there are even more refinance loan programs than borrowers! Call me at 941-504-1445 and we'll help you qualify for the best loan program for your situation. In the interest of looking at your options, you will need to consider your goals for your refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best option could be a low fixed-rate loan. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about five years), a fixed-rate mortgage can especially be a wise choice. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced payments. Refinancing may also cause your finance charges to be more over the life of the loan.
Getting Out Some Cash
Are you refinancing primarily to pull out some of your equity for an infusion of cash? Perhaps you need to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. With this in mind, you'll need to find a loan for more than the remaining balance of your present mortgage.Then you'll want However, if your interest rate is currently high and you've had it for a long time, you could be able to accomplish your goals without making your mortgage payments bigger.
Consolidating Your Debt
Do you want to pull out a portion of your home equity to consolidate additional debt? Excellent idea! If you have the home equity for it, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars in your monthly budget.
Paying it off Faster
Do you plan to build up equity more quickly, and have your mortgage paid off sooner? If this is your plan, your refinance can move you to a loan program with a shorter term, such as a 15 year loan. Your mortgage payments will probably be higher than with the long-term loan, but the pay-off is: that you will pay quite a bit less interest and can build up equity quicker. But, you could be able to switch without a higher monthly payment if your longer term loan was closed a while ago, and the balance remaining is low enough. You could even make it lower! To help you understand your options and the numerous benefits of refinancing, please contact us at 941-504-1445. I am are here for you.
Curious about refinancing? Call us: 941-504-1445.