Which refinancing option is best for you?
Rate/Term Refinance - Fixed Rates
The choices have been parried down quite a bit since the rise, then fall, of our markets. Most homeowners are finding that their options are the standard; 30-year fixed mortgage, 20-year fixed mortgage, or 15-year fixed mortgage. If you are moving from a 30-year to a 15-year program, chances are that you may not save money on a monthly basis. However, you may trim anywhere from 10-15 years from your existing program which can save you tens of thousands of dollars through the life of the loan. Share your goals with us, we can help you figure out the affordability of such a change, perhaps a 20-year option would fit just perfectly, still saving you money.
Rate/Term Refinance - Adjustable Rates
Far too often, adjustable rates are frowned upon. However, if you know that your job will relocate you or that you are planning to move to warmer climates as retirement nears, it may behoove you to take-on a short-term adjustable rate mortgage (ARM). The rates are less expensive than fixed period loans, so it may make perfect sense. You simply need to be able to judge whether or not you will live there long enough.
Investors find themselves overcoming several expensive hurdles by limiting their hold period on properties. Tactfully, they allow the property to cash-flow while taking on an ARM and allowing the property to appreciate over time. ARM’s can prove to be beneficial depending on the use of the program.
There are several reasons why someone would need to cash-out of their home. Maybe a start-up business, home remodeling, pay off cars and other debt, or simply to take a vacation. Discuss your perfect scenario with us, provide us with the data that we need to determine which option is best for you. We will review the top-three options, then you can decide which way to go.