Which Refinancing Option is Best for You?
There are an enormous number of refinancing options available to borrowers. Contact us at (904) 342-3622 and we will match you with the refinance loan program that best fits you. There are some general things to have in mind while you consider the choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you currently have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the interest rate varies. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the loan, even if interest rates rise. If you are not planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise option. However, if you do see yourself moving in the near future, an ARM with a low initial rate might be the ideal way to reduce your monthly payments.
Is "cashing out" your main purpose for refinancing? Your home needs updating; your daughter has been accepted to college and needs tuition; or you are taking your family on a cruise. In this case, you'll want to find a loan for more than the remaining balance on your present mortgage.Then you will You will be looking for a loan for more than the current balance of your present mortgage in this case. You may not increase your mortgage payemnt, though, if you have had your current loan for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Perhaps you want to pull out some of the home equity (cash out) to put toward other debt. If you have the home equity for it, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars in your budget each month.
Getting a Shorter Term Loan
Are you planning to fatten up your equity faster, and pay your mortgage loan off more quickly? If this is your plan, your refinance can change you to a loan program with a shorter term, like a 15 year loan. Although your mortgage payment amount will usually be increased, you can save on interest; so your home equity will build up faster. However, if you've held your current thirty year mortgage loan for a number of years and the remaining balance is somewhat low, you could be able to do this without increasing your monthly mortgage payment — it's even possible to save! To help you figure out your options and the numerous benefits of refinancing, please call us at (904) 342-3622. We are here to help you reach your goals!
Want to know more about refinancing? Call us at (904) 342-3622.