Refinancing: Which Option is for You?
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Even though it seems like it sometimes, there aren't as many refinance loan options as there are borrowers! We can guide you to locate the loan program that can fit your situation the best. Call us at 727-392-4227 to get things started. What are your goals for refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, your best option may be a low fixed-rate loan. Perhaps you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even as interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are expecting to live in your home for at least five more years, a fixed-rate loan may be an especially good choice 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 mortgage payments.
Is "cashing out" your main reason for your refinance? Perhaps you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. With this in mind, you need to find a loan for more than the remaining balance of your existing mortgage.With this goal, you will You will want to get a loan for more than the remaining balance of your existing mortgage in this case. If you've had your current mortgage for quite a while and/or have a loan whose interest rate is high, you may be able to do this without increasing your monthly payment.
Perhaps you'd like to pull out some home equity (cash out) to put toward other debt. If you own any higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Building up Equity Faster
Are you wanting to fatten up your equity faster, and pay your mortgage loan off more quickly? Consider refinancing with a short-term loan, like a 15-year mortgage loan. Your mortgage payments will likely be more than with your long-term mortgage, but the pay-off is: you will pay substantially less interest and can build up equity more quickly. But, you may be able to switch without much increase in your monthly payment if your longer term mortgage loan was closed a while back, and the remaining balance is somewhat low. You could even pay less! To help you figure out your options and the many benefits of refinancing, please contact us at 727-392-4227. We are here for you.
Want to know more about refinancing your home? Call us: 727-392-4227.