Refinancing: Which Program is for You?

There are an enormous number of refinancing options available to borrowers. We can help you find the refinance program that will fit your needs the best. Contact us at 727-290-6863 to get started. In order to review your options, you should think about what you want to achieve with your refinance.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best choice may be a low fixed-rate loan. Maybe you currently hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — in which the rate of interest can vary. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage, even when interest rates rise. If you are not expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a great loan option. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced monthly payments.

Refinancing to Cash Out

Is "cashing out" your main reason for refinancing? Maybe you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. Then you will want to apply for a loan for more than the remaining balance of your present mortgage. With this goal, you want to qualify for a loan program for a higher number than the balance remaining on your current mortgage loan. You might not have an increase in your mortgage payment, though, if you have had your current mortgage for a long time, and/or your loan interest rate is high.

Consolidating Your Debt

Do you want to cash out some home equity to consolidate other debt? Yes you can! If you have enough home equity, taking care of other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) may help save you a lot of money every month.

Paying it off Faster

Do you hope to build up equity quicker, and have your mortgage paid off faster? If this is your plan, your refinance mortgage can change you to a mortgage program with a shorter term, like a 15 year loan. Even though your monthly payment amount will usually be increased, you can be paying less interest; so your equity amount will build up faster. On the other hand, if your existing long-term loan has a small balance remaining, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you understand your options and the numerous benefits of refinancing, please call us at 727-290-6863. We are here for you.

Curious about refinancing? Give us a call at 727-290-6863.