Refinancing: Which Program is for You?
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The huge number of refinance options available can be overwhelming. We can guide you to select the refinance loan program that can fit your financial situation the best. Call us at 727-393-9399 to get started. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are achieving lower payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you plan to stay in your home for about five more years, a fixed-rate loan may be a particularly good option for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Are you refinancing primarily to pull out some equity for an infusion of cash? Your house needs new carpet; your daughter has been accepted to college and needs tuition; or you have a special family vacation planned. So you will need to qualify for a loan above the balance remaining on your current mortgage.
Consolidating Your Debt
Maybe you hope to cash out some of the home equity (cash out) to use toward other debt. If you have some debt with steep interest (like credit cards or car loans or student loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have enough home equity.
Paying it off Faster
Are you planning to fatten up your equity faster, and pay off your mortgage sooner? If this is your plan, your refinance mortgage can move you to a mortgage loan program with a shorter term, for example: a 15 year loan. You will be paying less interest and increasing your home equity faster, although your payments will generally be higher than you were paying. However, if you've held your current 30-year mortgage loan for a number of years and the remaining balance is somewhat low, you may be do this without raising your monthly payment — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please contact us at 727-393-9399. We are here for you.
Curious about refinancing? Give us a call at 727-393-9399.