Which refinancing option is best for you?

There aren't quite as many loan programs as there are borrowers, but it seems like it sometimes.  At Manhattan Mortgage Company of Wesley Chapel we will work with you to get you qualified for the best loan program to fit your needs. Call Manhattan Mortgage Company of Wesley Chapel today at 813-994-8877 and let us give you a free mortgage analysis, or click below to apply online.  Manhattan Mortgage Company services the whole state of Florida.

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Are you refinancing primarily to lower your rate and monthly payments?  Then your best option might be a low rate adjustable type loan.  Maybe you have a fixed-rate mortgage now with a higher rate, or maybe you have an ARM -- adjustable rate mortgage -- where the interest rate varies.  Unlike an ARM-adjustable rate mortgage, when you qualify for that fixed rate loan, the rate is fixed over the life of the loan.  This is an especially good idea if you don't think you'll be moving within the next five years or so.  On the other hand, if you do see yourself moving within the next few years, an ARM with a low initial rate might be the best way to lower your monthly payment.

Are you refinancing primarily to cash out some home equity? Maybe you want to pay for home improvements, pay your child's college tuition bill, take your dream vacation, etc.  You will want to qualify for a loan for more than the balance remaining on your current mortgage. If you've had your current mortgage for a number of years and/or have a mortgage whose interest rate is higher, you may be able to do this without increasing your monthly payment.

Do you want to cash out some equity to consolidate other debt?  Good idea!  If you have the equity in your home to make it work, paying off other debt with higher interest rates than the interest rate on your mortgage -- for example, credit cards, home equity loans, car loans, some student loans -- means you can possibly save hundreds of dollars a month.

Do you want to build up home equity more quickly, and pay off your mortgage sooner?  Consider refinancing with a shorter-term loan, such as a 15-year mortgage. Your payments will be higher than with a longer-term loan, but in exchange, you will pay substantially less interest, and build equity much quicker.  If you have had your current 30-year mortgage for a number of years and the loan balance is relatively low, you may be able to do this without increasing your monthly payment -- you may even be able to save money each month!  For example, let's say years ago you took out a $150,000 30-year mortgage at eight percent interest.  Your payment is about $1,100, exclusive of taxes, insurance and so on. If your balance today is down to $130,000, you might take out a 15-year mortgage at six percent and have an almost identical monthly payment.  This is a great option for people whose main goal is not to save money on their monthly payment but rather to build up equity and pay off their home more quickly.