Choosing a Refinancing Program
There are an enormous number of refinancing options available to borrowers. Call us at (904) 342-3622 and we can work with you to qualify you for the best refinance loan program to fit your needs. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan may be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even when interest rates rise, a fixed rate mortgage loan will 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 loan may be a particulary good fit for you. However, an ARM with a low intitial payment could be a better way to reduce your payments if you expect to move within the near future.
Is "cashing out" your main purpose for refinancing? Your house needs new carpet; your daughter has gone to college and needs tuition; or you are taking your family on a cruise. So you'll want to apply for a loan for more than the balance remaining of your present mortgage.In this case, you'll need You might not have an increase in your mortgage payemnt, however, if you have had your existing mortgage loan for a number of years, and/or your interest rate is high.
Consolidating Your Debt
Do you want to cash out a portion of your equity to consolidate other debt? Excellent idea! If you hold some debt with steep interest (such as credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of equity.
Paying it off Sooner
Do you hope to build up home equity quicker, and pay off your mortgage sooner? If this is your plan, your refinance mortgage can change 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 equity faster, even though your monthly payments will likely be bigger than they were. However, if you've held your existing thirty-year loan for a number of years and the remaining balance is relatively low, you may be do this without raising your monthly mortgage payment — you may even be able to save! To help you figure out your options and the many benefits in refinancing, please call us at (904) 342-3622. We will help you reach your goals!
Curious about refinancing? Give us a call: (904) 342-3622.