Refinancing: Which Program is for You?
There are an enormous number of refinancing options available to borrowers. We can help you select the refinance program that can fit your situation the best. Contact us at (904) 342-3622 to get started. There are some general questions to ask yourself as you review your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best option could be a low fixed-rate loan. Maybe you currently have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the loan, even as interest rates rise. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise choice. However, an ARM with a low intitial payment may be a wiser way to lower your monthly payments if you expect to move in the near future.
Getting Out some Cash
Is "cashing out" your primary reason for refinancing? Your house needs updating; your son has been accepted to University and needs tuition; or you have a special family vacation planned. So you'll want to find a loan for more than the remaining balance on your present mortgage loan.Then you will need However, if your interest rate is high now and you have held it for a long time, you could be able to accomplish your goals without making your mortgage payments increase.
Consolidating Your Debt
Do you have other debt, maybe with a high interest rate, that you need to consolidate? If you have the home equity for it, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you can possible save several hundred dollars each month.
Switching to a Shorter Term Loan
Are you wanting to fatten up your home equity faster, and get your mortgage paid off more quickly? In that case, you'll need to look into refinancing to a short term mortgage loan - such as a fifteen-year loan. Your mortgage payments will probably be more than they were with the longer term loan, but the pay-off is: that you will pay quite a bit less interest and can build up equity more quickly. But, you may be able to switch without much increase in your monthly mortgage payment if your long term mortgage was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you understand your options and the many benefits in refinancing, please contact us at (904) 342-3622. We are here for you.
Curious about refinancing your home? Call us at (904) 342-3622.