Selecting a Refinancing Option
When you are overwhelmed with so many options, it may seem as if there are even more refinance programs than applicants! Call us at (904) 342-3622 and we can help you qualify for the right refinance program for your financial needs. There are several things to keep in mind as you review your options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan may be a wise option for you. Maybe you currently hold a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — with which the interest rate can vary. Even when interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you plan to stay 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 will need to consider an ARM with a low initial rate to get lower monthly payments.
Is "cashing out" your main purpose for refinancing? Your home needs renovating; your son has been accepted to college and needs tuition; or you have a special family vacation planned. Then you will need to get a loan for more than the remaining balance on your current mortgage.Then you will You'll be looking for a loan for a higher amount than the remaining balance with your current home loan in that case. If you've had your existing mortgage for a number of years and/or have a mortgage with high interest, you might\could be able to do this without making your monthly payment bigger.
Do you want to pull out a portion of your home equity to consolidate additional debt? Yes you can! If you have some higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Are you wanting to fatten up your home equity faster, and pay off your mortgage more quickly? If this is your hope, the refinance mortgage can move you to a mortgage program with a shorter term, like a 15 year loan. Even though your mortgage payment amount will probably be more, you will be paying less interest; so your equity amount will rise up faster. However, if you have had your current thirty-year loan for a number of years and the loan balance is somewhat low, you might be do this without increasing your mortgage payment — it's even possible to save! To help you understand your options and the multiple benefits in refinancing, please contact us at (904) 342-3622. We are here for you.
Curious about refinancing? Give us a call at (904) 342-3622.