Which Refinancing Loan Program is Best for You?
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The number of refinance options available to borrowers can be overwhelming. Contact us at 407-496-3555 and we will match you with the refinance loan program that fits you best. What are your goals for refinancing? Keeping in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan could be a wise choice for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in the low interest rate for the life of your mortgage. If you aren't planning on moving in the near future (about five years), a fixed rate mortgage loan can especially be a wise choice. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get lower monthly payments. By refinancing your existing loan, your total finance charges could be higher over the life of the loan.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Your house needs new carpet; your daughter has been accepted to college and needs tuition; or you are planning a special vacation. So you will need to find a loan above the balance remaining on your present mortgage.In that case, you will want You might not have an increase in your mortgage payment, though, if you have had your existing mortgage for a number of years, and/or your interest rate is high.
Maybe you want to pull out a portion of the home equity (cash out) to use toward other debt. If you own some higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the home equity built up to make it work.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your equity quicker? Consider refinancing to a short-term loan, such as a 15-year mortgage. Even though your monthly payments will usually be increased, you can be paying less interest; so your home equity will rise up faster. On the other hand, if your existing long-term mortgage loan has a low remaining balance, and was closed a while ago, you might be able to make the switch without paying more each month. To help you figure out your options and the many benefits of refinancing, please contact us at
407-496-3555. We would love to help you reach your goals!
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