Which Refinancing Option is Right for You?

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There are not as many loan programs as there are borrowers, but it seems like it at times! We can guide you to select the loan program that will fit your needs the best. Contact us at 941-924-0044 to get things started. What are your reasons for your refinance loan? Considering in mind the following will help you begin your decision process.

Lowering Your Payments

Are getting reduced mortgage payments and a better rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. Maybe you are presently in a mortgage with a high, fixed interest rate, or a loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low interest rate for the term of your loan. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a wise choice. However, an ARM with a initial low payment may be a better way to reduce your monthly payments if you see yourself moving in the next few years. As a result of refinancing, your total finance charges may be higher over the life of the loan.

Refinancing to Cash Out on Your Equity

Are you planning to cash out some of your home equity in your refinance? Your house needs renovating; your son has gone to University and needs tuition money; or you are planning a special vacation. So you will need to get a loan for more than the balance remaining of your current mortgage.So you want However, if your mortgage rate is currently high and you've had it for a long time, you could be able to reach your goals without making your monthly payments higher.

Consolidating Your Debt

Perhaps you hope to cash out some equity in your home (cash out) to use toward other debt. If you have the home equity for it, paying off other high interest debt (like credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars a month.

Getting a Shorter Term Loan

Do you need to build up home equity quicker, and have your mortgage paid off sooner? Consider refinancing to a shorter term loan, such as a 15-year mortgage. The mortgage payments will likely be more than with the long-term mortgage loan, but in exchange, you will pay quite a bit less interest and will build up equity quicker. Conversely, if your current long-term mortgage has a small remaining balance, and was closed a while ago, you may be able to make the switch without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please contact us at 941-924-0044. We are here for you.