Choosing a Refinancing Option
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Even though it may seem like it sometimes, there aren't as many loan programs as there are borrowers! Call us at 305-608-8808 and we'll help you qualify for the right refinance loan for your needs. What are your reasons for your refinance loan? Considering in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, a good option may be a low fixed-rate loan. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even if rates come up later, unlike with your ARM, when you close a fixed-rate mortgage, you set that low interest rate for the life of your mortgage. If you are not planning on moving in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise loan option. However, if you do see yourself moving within the next few years, an ARM mortgage with a low initial rate may be the best way to lower your monthly payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? Your house needs updating; your son has been accepted to college and needs tuition money; or you have a special family vacation planned. Then you'll want to get a loan above the balance remaining on your existing mortgage loan.Then you want to qualify for a loan for a bigger number than the remaining balance on your current mortgage. If you've had your current mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without making your mortgage payment bigger.
Consolidating Your Debt
Perhaps you'd like to cash out some of the equity (cash out) to put toward other debt. If you own any higher interest debts (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough equity.
Getting a Shorter Term Loan
Do you want to build up home equity quicker, and have your mortgage paid off sooner? If this is your goal, your refinance loan can move you to a mortgage loan program with a shorter term, such as a 15 year loan. The payments will probably be higher than they were with your long-term loan, but the pay-off is: you will pay considerably less interest and will build up equity quicker. But, you may be able to make the change without a bigger monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is somewhat low. You could even make it lower! To help you determine your options and the many benefits of refinancing, please contact us at 305-608-8808. We are here for you.
Curious about refinancing your home? Call us: 305-608-8808.