Refinancing: Which Option is for You?
Even though it may seem like it sometimes, there aren't as many refinance loan options as there are borrowers! Call us at (904) 342-3622 and we can help you qualify for the best loan program to fit your needs. What are your goals for refinancing? Keeping in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving better monthly payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even if rates rise later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the life of your mortgage. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise loan option. However, if you do see yourself moving in the near future, an ARM with a small initial rate might be the ideal way to bring down your monthly payment.
Getting Out some Cash
Are you refinancing mainly to pull out some equity for an infusion of cash? It could be you need to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. In this case, you will need to find a loan higher than the remaining balance on your existing mortgage loan.Then you'll want to qualify for a loan for a higher number than the remaining balance on your existing mortgage loan. You may not increase your monthly payemnt, however, if you've had your existing mortgage loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to cash out some of your equity to consolidate other debt? Great plan! If you have the home equity to make it work, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars monthly.
Building up Equity Faster
Are you dreaming of paying your loan off faster, while building up your home equity more quickly? If this is your hope, the refinance loan can switch you to a loan program with a shorter term, such as a 15 year loan. The payments will likely be more than with your longer term mortgage, but the pay-off is: that you will pay quite a bit less interest and will build up equity more quickly. On the other hand, if your existing long-term mortgage has a small balance remaining, and was closed a while ago, you might be able to make the change without paying more each month. To help you determine your options and the multiple benefits in refinancing, please contact us at (904) 342-3622. We will help you reach your goals!
Curious about refinancing? Call us: (904) 342-3622.