Refinancing: Which Option is for You?
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The number of refinance options available can be overwhelming. Contact us at (772) 252-6724 and we will match you with the refinance loan program that fits you best. In order to review your options, you should consider your goals for your refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, the best option might be a low fixed-rate loan. Maybe you are now in a loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your loan, even when interest rates rise. This is especially a wise choice if you don't think you'll be moving within the next five years or so. However, an ARM with a initial low payment could be a smarter way to lower your payments if you expect to move in the next few years.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? It could be you want to update your kitchen, take care of your college kid's tuition, or take your dream vacation. With this in mind, you will need to apply for a loan above the remaining balance of your present mortgage loan.So you'll want However, if your loan interest rate is currently high and you have held it for quite a few years, you may be able to achieve your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you want to cash out some of your equity to consolidate other debt? Excellent idea! If you have some higher interest debts (like credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough home equity.
Switching to a Shorter Term Loan
Do you want to build up home equity quicker, and pay off your mortgage faster? Consider refinancing to a short-term loan, such as a 15-year mortgage loan. The mortgage payments will likely be higher than they were with your longer term mortgage loan, but in exchange, you will pay considerably less interest and can build up equity more quickly. However, if you have had your existing thirty year mortgage loan for a long time and the loan balance is rather low, you might be able to do this without raising your monthly mortgage payment — you might even be able to save! To help you understand your options and the numerous benefits of refinancing, please contact us at (772) 252-6724. We would love to help you reach your goals!
Want to know more about refinancing? Call us at (772) 252-6724.