Choosing a Refinancing Option

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There are not as many loan program choices as there are applicants, but at times it feels like it! We can guide you to select the refinance loan program that will fit your financial situation the best. Call us at 813-766-5149 to begin the process. In the interest of looking at your options, you need to list what you want to achieve with your refinance.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? Then a good option might be a low fixed-rate loan. Perhaps you now have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest can vary. Even when rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low-interest rate for the life of your mortgage. If you are expecting to live in your home for about five more years, a fixed rate loan may be an especially good option for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get lower monthly payments. Refinancing can also cause your finance charges to be more over the life of the loan.

Getting Out Some Cash

Are you hoping to cash out some of your home equity in your refinance? Perhaps you need to make home improvements, take care of your college kid's tuition, or take your dream vacation. With this in mind, you'll want to find a loan for more than the remaining balance on your current mortgage. So you need If you've had your existing mortgage for quite a while and/or have a high-interest mortgage, you might\could be able to do this without increasing your mortgage payment.

Debt Consolidation

Perhaps you want to cash out a portion of the equity in your home (cash out) to put toward other debt. If you own some higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have enough home equity.

Switching to a Shorter-Term Loan

Do you hope to build up equity more quickly, and have your mortgage paid off more quickly? Then, you want to look into refinancing to a short-term mortgage - for example, a fifteen-year loan. Although your mortgage payment amount will probably be increased, you will save on interest; so your home equity will rise up faster. However, if you've held your current thirty-year mortgage for a number of years and the remaining balance is relatively low, you could be able to do this without increasing your mortgage payment — it's even possible to save! To help you understand your options and the many benefits of refinancing, please call us at 813-766-5149. We are here for you.

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