Refinancing: Which Program is for You?

When you are overwhelmed with so many options, it may seem like there are even more loan programs than borrowers! Call us at (904) 342-3622 and we'll help you qualify for the perfect refinance program for your situation. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan might be a wise option for you. Perhaps you are currently in a loan with a high, fixed interest rate, or a mortgage with which the interest rate varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise loan option. On the other hand, if you can see yourself moving in the near future, an ARM mortgage with a low initial rate may be the ideal way to reduce your monthly payment.

Refinancing to Cash Out

Is "cashing out" your main reason for refinancing? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you plan to renovate your home. Then you need to get a loan above the balance remaining on your existing mortgage.With this goal, you want to need to get a loan for a bigger amount than the balance remaining on your present mortgage loan. You might not increase your mortgage payemnt, however, if you've had your current mortgage for a long time, and/or your loan interest rate is high.

Consolidating Your Debt

Do you hold other debt, perhaps with a high interest rate, that you want to consolidate? If you hold some debt with higher interest (such as 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 the right amount of equity.

Switching to a Shorter Term Loan

Are you hoping to fatten your home equity faster, and get your mortgage paid off sooner? In that case, you'll want to find out about refinancing to a short term mortgage - like a fifteen-year loan. You will be paying less interest and growing your equity more quickly, even though your payments will usually be more than they were. But, you could be able to switch without a bigger monthly mortgage payment if your longer term loan was closed a while back, and the balance remaining is small. You could even make it lower! To help you understand your options and the many benefits of refinancing, please contact us at (904) 342-3622. We are here for you.

Want to know more about refinancing your home? Call us at (904) 342-3622.

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2800 North Fifth Street Suite 301B
St. Augustine, FL 32084