Choosing a Refinancing Option
There are a huge number of refinancing options available to borrowers. Call us at (904) 342-3622 and we will match you with the refinance program that is best for you. In order to review your choices, you'll need to consider what you want to achieve with the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. This kind of loan can be especially a good idea if you don't expect to sell your home within the next 5 years or so. However, an ARM with a low intitial payment may be a smarter way to lower your payments if you plan on moving in the next few years.
Are you hoping to cash out some of your home equity with your refinance? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. Then you'll want to look for a loan above the balance remaining of your existing mortgage.Then you need You may not have an increase in your mortgage payemnt, however, if you've had your existing mortgage for a number of years, and/or your interest rate is high.
Maybe you'd like to pull out a portion of the home equity (cash out) to put toward other debt. If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can possible save several hundred dollars per month.
Building up Equity More Quickly
Do you want to build up home equity more quickly, and have your mortgage paid off faster? If this is your hope, the refinance can move you to a mortgage loan program with a shorter term, like a 15 year loan. The mortgage payments will probably be more than with a long-term mortgage loan, but the pay-off is: that you will pay considerably less interest and can build up equity quicker. Conversely, if your current longer term mortgage has a low remaining balance, and was closed a while ago, you might be able to make the switch without paying more each month. To help you understand your options and the many benefits of refinancing, please call us at (904) 342-3622. We can help you reach your goals!
Curious about refinancing your home? Call us: (904) 342-3622.