Which Refinancing Option is Right for You?

There aren't as many loan programs as there are applicants, but sometimes it seems like it! We can guide you to choose the refinance loan program that can fit your needs the best. Call us at 352-369-4200 to begin the process. There are several questions to ask yourself while you look at the choices.

Lowering Your Payments

Are achieving better mortgage payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be your best option. Perhaps you currently hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you set that low rate for the life of your loan. If you are not planning a move in the near future (about five years), a fixed-rate mortgage can particularly be a great option. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.

Cashing Out

Are you hoping to cash out some of your home equity in your refinance? Your house needs improvements; your daughter has gone to college and needs tuition money; or you are planning a special vacation. In this case, you want to apply for a loan above the remaining balance on your current mortgage.So you want You might not have an increase in your monthly payment, however, if you've had your current mortgage for a while, and/or your interest rate is high.

Consolidating Debt

Maybe you want to cash out a portion of the equity in your home (cash out) to put toward other debt. If you have any higher interest debts (such as credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have the home equity built up to make it work.

Getting a Shorter Term Loan

Are you dreaming of paying off your loan more quickly, while beefing up your equity quicker? You should consider refinancing with a short-term loan, often a 15-year mortgage. Your monthly payments will likely be higher than with your longer term mortgage, but in exchange, that you will pay substantially less interest and can build up equity more quickly. However, if you've had your current thirty-year mortgage for a number of years and the loan balance is somewhat low, you could be do this without raising your monthly mortgage payment — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please contact us at 352-369-4200. We are here for you.