Which Refinancing Option is Best for You?
The huge number of refinance options available can be overwhelming. We can help you find the loan program that will fit your financial situation the best. Contact us at (904) 342-3622 to get started. There are some general questions to ask yourself as you review the choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the ideal choice for you. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in that low interest rate for the life of your loan. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can especially be a good loan option. However, an ARM with a initial low payment could be a smarter way to lower your mortgage payments if you plan on moving in the near future.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some home equity for an infusion of cash? It could be you want to make home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. Then you'll want to find a loan higher than the remaining balance on your present mortgage.In this case, you will You will want to get a loan for a bigger amount than the balance remaining on your present home loan in that case. You may not increase your monthly payemnt, however, if you've had your current loan for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Do you hold other debt, perhaps with a higher interest rate, that you'd like to consolidate? If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars in your monthly budget.
Paying it off Faster
Are you dreaming of paying off your loan more quickly, while building up your home equity faster? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. You will be paying less interest and increasing your home equity more quickly, although your mortgage payments will generally be higher than they were. But, you may be able to make the change without much increase in your monthly payment if your long term loan was closed a while back, and the remaining balance is low. You may even make it lower! To help you determine your options and the multiple benefits of refinancing, please contact us at (904) 342-3622. We are here for you.
Want to know more about refinancing? Call us: (904) 342-3622.