Refinancing: Which Program is for You?

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Even though it seems like it sometimes, there aren't as many refinance loan choices as there are applicants! Contact us at 407-647-RATE and we can match you with the refinance program that is best for you. What do you hope to achieve with refinancing? Keeping in mind the information below will help you narrow your choices.

Lowering Your Payments

Are getting better mortgage payments and a better rate your main refinance goals? In that case, applying for a low, fixed-rate loan might be a wise option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage, even if interest rates rise. If you aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a wise loan option. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments. Due to refinancing, your total finance charges may be higher over the life of the loan.

Getting Out Some Cash

Are you wanting to cash out some of your equity in your refinance? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you will want to find a loan above the remaining balance of your existing mortgage.Then you'll You'll want to qualify for a loan for a higher amount than the remaining balance on your current mortgage loan in that case. However, if your loan interest rate is currently high and you've had it for a long time, you could be able to achieve your goals without an increase in your mortgage payment.

Debt Consolidation

Do you have other debt, maybe with a high interest rate, that you want to consolidate? If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars in your monthly budget.

Paying it off Faster

Do you plan to build up equity quicker, and pay off your mortgage sooner? If this is your plan, the refinance can move you to a loan program with a shorter term, for example: a 15 year loan. Although your monthly payment amount will usually be increased, you can be paying less interest; so your equity amount will build up faster. But, you could be able to switch without a bigger monthly mortgage payment if your long term mortgage was closed a while ago, and the remaining balance is somewhat low. You could even pay less! To help you figure out your options and the multiple benefits in refinancing, please contact us at 407-647-RATE. We are here for you.

Curious about refinancing your home? Call us at 407-647-RATE.