Choosing a Refinancing Option

---

When you are overwhelmed with all the options, it may seem as if there are even more refinance programs than borrowers! We can guide you to locate the loan program that can fit your situation the best. Call us at 941-584-4098 to begin the process. There are several things to have in mind while you consider the choices.

Reducing Your Monthly Payments

Are getting better mortgage payments and a lower rate your main refinance goals? In that case, a low, fixed rate loan may be the best loan program for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set the low interest rate for the term of your mortgage. A fixed-rate mortgage is especially a good idea if you don't plan to sell your home within the next 5 years or so. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments. As a result of refinancing, your total finance charges may be higher over the life of the loan.

Getting Out Some Cash

Are you planning 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 planning some home improvements. With this in mind, you will want to look for a loan for more than the balance remaining of your existing mortgage loan.Then you You'll need to qualify for a loan for more than the current balance with your current mortgage in this case. If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.

Consolidating Your Debt

Do you want to cash out a portion of your equity to consolidate additional debt? Yes you can! If you have a fair amount of home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a lot of cash each month.

Paying it off Faster

Do you plan to build up equity more quickly, and have your mortgage paid off more quickly? If this is your plan, the refinance can change you to a mortgage loan program with a short, for example: a 15 year loan. The monthly payments will probably be more than with your longer term loan, but the pay-off is: you will pay substantially less interest and can build up equity more quickly. On the other hand, if your current longer term mortgage has a low remaining balance, and was closed a number of years ago, you might be able to make the move without paying more each month. To help you figure out your options and the numerous benefits in refinancing, please contact us at 941-584-4098. We are here for you.