Which Refinancing Program is Best for You?
When you are overwhelmed with so many options, it may seem like there are even more refinance programs than applicants! Call us at (904) 342-3622 and we can match you with the refinance loan program that best fits you. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are achieving lower payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. Maybe you now hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Even as interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. This can be particularly a wise choice if you don't think you'll be moving within the next five years or so. However, an ARM with a initial low payment could be a wiser way to lower your payments if you expect to move in the next few years.
Are you refinancing mainly to "cash out" some home equity? It could be you want to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. So you'll need to get a loan for more than the balance remaining of your current mortgage.Then you'll want to need to find a loan for a bigger amount than the remaining balance on your present mortgage. However, if your loan interest rate is currently high and you've had it for quite a few years, you could be able to reach your goals without an increase in your mortgage payment.
Do you hold other debt, perhaps with high interest, that you need to consolidate? If you hold any higher interest debts (such as credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Are you hoping to fatten up your home equity faster, and pay your mortgage loan off sooner? If this is your plan, the refinance can change you to a mortgage program with a short, such as a 15 year loan. The mortgage payments will likely be higher than they were with your longer term loan, but in exchange, you will pay quite a bit less interest and will build up equity quicker. But, you could be able to make the change without a higher monthly mortgage payment if your longer term loan was closed a while back, and the remaining balance is low enough. You may even make it lower! To help you understand your options and the numerous benefits in refinancing, please contact us at (904) 342-3622. We would love to help you reach your goals!
Want to know more about refinancing? Call us at (904) 342-3622.