Selecting a Refinancing Loan
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The huge number of refinance options available to borrowers can be overwhelming. We can help you locate the refinance loan program that can fit your needs the best. Contact us at 352-347-3303 to begin the process. What are your goals for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Maybe you now have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your mortgage, even when interest rates rise. If you are planning to live in your home for at least five more years, a fixed-rate loan may be an especially good option for you. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Getting Out some Cash
Are you refinancing primarily to pull out some home equity for an infusion of cash? It could be you're dreaming of a cruise; you have to pay college tuition for your child; or you are updating your kitchen. With this in mind, you'll want to look for a loan for more than the remaining balance of your current mortgage.Then you will You'll want to get a loan for a bigger amount than the current balance with your current mortgage in this case. You might not increase your monthly payment, though, if you have had your existing mortgage for a number of years, and/or your loan interest rate is high.
Do you want to cash out some of your equity to consolidate other debt? Good idea! If you own any debt with steep interest (such as credit cards or vehicle 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.
Getting a Shorter Term Loan
Do you hope to build up home equity quicker, and have your mortgage paid off faster? If this is your wish, your refinance mortgage can switch you to a mortgage program with a shorter term, such as a 15 year loan. Even though your mortgage payments will usually be increased, you can be paying less interest; so your home equity will build up faster. However, if you've held your current thirty year mortgage for a number of years and the loan balance is rather low, you might be do this without raising your monthly payment — it's even possible to save! To help you determine your options and the numerous benefits of refinancing, please contact us at 352-347-3303. We are here for you.
Curious about refinancing your home? Call us at 352-347-3303.