Selecting a Refinancing Option
When you are overwhelmed with so many choices, it may seem as if there are even more refinance programs than borrowers! We can help you find the loan program that can fit your financial situation the best. Call us at (904) 342-3622 to get started. What are your goals for refinancing? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are getting lower payments and a lower rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. Maybe you currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate varies. Even as interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage can be especially a wise choice if you don't plan to move within the next five years or so. However, an ARM with a initial low payment could be a better way to lower your payments if you expect to move in the next few years.
Is your refinance goal primarily to pull out some of your equity for an infusion of cash? It could be you're dreaming of a cruise; you have to pay college tuition for your child; or you are updating your kitchen. So you will need to apply for a loan higher than the balance remaining on your current mortgage loan.With this goal, you want You might not increase your mortgage payemnt, though, if you've had your current mortgage loan for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you hold other debt, perhaps with higher interest, that you want to consolidate? If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (for example: credit cards, home equity loans, or car loans) means you can save possibly several hundred dollars per month.
Getting a Shorter Term Loan
Are you hoping to fatten up your home equity faster, and get your mortgage paid off more quickly? If this is your wish, the refinance can switch you to a loan program with a shorter term, for example: a 15 year loan. Your mortgage payments will likely be more than they were with a long-term loan, but in exchange, you will pay substantially less interest and can build up equity quicker. But, you may be able to make the change without a bigger monthly mortgage payment if your longer term mortgage was closed a while ago, and the remaining balance is small. You could even make it lower! To help you determine your options and the multiple benefits of refinancing, please call us at (904) 342-3622. We are here for you.
Want to know more about refinancing your home? Give us a call: (904) 342-3622.