Which Refinancing Option is Best for You?
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The number of refinance options available to borrowers can be overwhelming. Call us at 954-400-0488 and we can match you with the loan program that is ideal for your needs. There are several things to have in mind as you look at the choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, a good option could be a low fixed-rate loan. Perhaps you currently hold a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even if interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you expect to stay in your home for about five more years, a fixed rate mortgage may be an especially good choice for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower mortgage payments. By refinancing your existing mortgage, you may wind up paying more in finance charges over the life of the loan.
Is "cashing out" your primary purpose for your refinance? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you want to get a loan higher than the remaining balance on your current mortgage loan.Then you'll want to qualify for a loan for a bigger amount than the remaining balance on your present mortgage. However, if your loan interest rate is currently high and you've held it for a long time, you could be able to accomplish your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you hold other debt, perhaps with a higher interest rate, that you'd like to consolidate? If you own any higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the home equity built up to make it work.
Building up Equity Faster
Do you want to build up equity more quickly, and pay off your mortgage more quickly? If this is your goal, your refinance mortgage can change you to a loan program with a short, like a 15 year loan. The mortgage payments will probably be higher than they were with the longer term mortgage loan, but in exchange, you will pay substantially less interest and will build up equity more quickly. But, you could be able to make the change without a higher monthly mortgage payment if your longer term mortgage loan was closed a while back, and the balance remaining is small. You may even pay less! To help you understand your options and the numerous benefits of refinancing, please call us at
954-400-0488. We can help you reach your goals!
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