Refinancing: Which Loan Program is for You?

There are an enormous number of refinancing programs available to borrowers. Call us at (941) 954-4252 and we can match you with the refinance program that is best for your needs. There are some general things to have in mind while you look at your choices.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even if interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are planning to live in your home for about five more years, a fixed rate loan may be an especially good option for you. However, an ARM with a initial low payment may be a smarter way to reduce your mortgage payments if you plan on moving in the next few years.

Refinancing to Cash Out

Are you hoping to cash out some of your home equity in your refinance? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you are updating your kitchen. So you want to find a loan higher than the balance remaining of your current mortgage.With this goal, you will want to qualify for a loan for a higher amount than the remaining balance on your current mortgage. If you've had your current mortgage for a number of years and/or have a mortgage with high interest, you may be able to do this without making your monthly payment bigger.

Consolidating Your Debt

Do you want to cash out some of your equity to consolidate additional debt? Great idea! If you own some debt with higher interest (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have enough home equity.

Building up Equity More Quickly

Are you dreaming of paying off your loan more quickly, while beefing up your equity faster? Then, you need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. You will be paying less interest and growing your home equity more quickly, although your monthly payments will usually be more than they were. But, you may be able to switch without a bigger monthly payment if your long term mortgage was closed a while ago, and the remaining balance is low. You could even pay less! To help you understand your options and the numerous benefits of refinancing, please contact us at (941) 954-4252. We are here for you.