Homeowners will often find themselves considering a refinance on their home. Particularly with today’s low interest rates, refinancing is even more appealing. Homeowners typically refinance to reduce their monthly payments or lower their interest rate. Sometimes, refinancing is beneficial for homeowners who desire to pay off or consolidate other debts. In the event of refinancing, there are several types of refinancing options to accommodate homeowner needs. But which refinancing option is best for you?
Adjustable-Rate vs. Fixed-Rate
Homeowners will often convert from an adjustable-rate mortgage to a fixed-rate mortgage or vice versa when refinancing.
An adjustable-rate mortgage (ARM) is a type of mortgage where the interest rate varies throughout the life of the loan. There are limits set on how much interest rates can rise per year or over the lifetime of the loan. Adjustable-rate mortgages can be beneficial for home-buyers who plan to pay the loan off in a specific time frame.
Fixed-rate mortgages have an interest rate that does not change throughout the life of the loan. Fixed-rate mortgages are the most popular type of home loan as their monthly payments are smaller, making them more affordable. Payments are also the same every month, comforting homeowners.
Cash-Out Refinancing
A cash-out refinance is a way to both refinance and borrow money at the same time. Depending on the amount of equity in your home will depend on how much cash homeowners can receive. Homeowners often choose cash-out refinancing to help pay off credit card debt, help with home improvements, or college tuition.
Home Equity Loans and Lines of Credit
Home equity loans are fixed loans in which a borrower receives a lump sum of cash at closing and are paid off over a specific term. This type of loan is often referred to as a second mortgage.
A Home Equity Line of Credit (HELOC) is a refinancing option that provides flexibility for a homeowner to draw upon to take out cash. HELOC loans allow homeowners to access funds as they choose.
If homeowners have a low interest rate on their existing mortgage and refinancing would result in a higher rate, a home equity loan or line of credit is a better option.
Marimark Mortgage
Marimark Mortgage is based in Tampa, Florida, and serves the mortgage needs of home-buyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.
We specialize in adjustable-rate mortgages, conventional home mortgages, FHA, VA, and USDA mortgage options, refinance loans, and reverse mortgages. We have worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.
To get started with a mortgage to buy your next home, please fill out our Quick Mortgage Application, or contact us directly.

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