Selecting a Refinancing Loan
When you are overwhelmed with all the choices, it may seem like there are even more refinance loan programs than borrowers! 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 refinancing? Keeping in mind the information below will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Maybe you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the interest rate varies. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your mortgage, even as interest rates rise. If you plan to live in your home for at least five more years, a fixed-rate loan may be a particulary good choice for you. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate to get lower payments.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity with your refinance? Perhaps you need to pay for home improvements, pay your child's college tuition bill, or take a cruise. So you'll need to apply for a loan for more than the remaining balance on your current mortgage.With this goal, you want If you've had your current 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 mortgage payment bigger.
Maybe you'd like to pull out some of the home equity (cash out) to put toward other debt. If you hold some debt with higher interest (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough home equity.
Building up Equity More Quickly
Are you planning to fatten your equity faster, and pay off your mortgage more quickly? If this is your goal, the refinance mortgage can move you to a loan program with a short, like a 15 year loan. Although your mortgage payments will likely be more, you can save on interest; so your home equity will build up faster. However, if you have had your current 30-year mortgage for a number of years and the remaining balance is relatively low, you could be do this without increasing your monthly payment — you could even be able to save! To help you determine your options and the many benefits in refinancing, please call us at (904) 342-3622. We will help you reach your goals!
Want to know more about refinancing your home? Give us a call: (904) 342-3622.