Refinancing: Which Program is for You?
When you are overwhelmed with so many options, it may seem like there are even more refinance programs than borrowers! Contact us at 504-866-5626 and we'll work with you to qualify you for the best loan program to fit your situation. There are some general things to keep in mind while you look at the options.
Lowering Your Payments
Are getting lower monthly payments and an improved rate your main refinance goals? In that case, applying for a low, fixed-rate loan may be a good option for you. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the loan, even when interest rates rise. This can be especially a wise idea if you aren't expecting a move within the next 5 years or so. However, an ARM with a low intitial payment could be a better way to reduce your mortgage payments if you plan on moving in the near future.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? Your house needs improvements; your son has gone to college and needs tuition money; or you are planning a special vacation. Then you will want to find a loan above the remaining balance of your current mortgage.So you will You will need to get a loan for more than the balance remaining of your current home loan in this case. If you've had your current mortgage loan for a number of years and/or have a loan whose interest rate is high, you might\could be able to do this without increasing your mortgage payment.
Do you hold other debt, perhaps with a high interest rate, that you want to consolidate? If you have a fair amount of home equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) may help save you a lot of cash every month.
Getting a Shorter Term Loan
Are you hoping to fatten up your equity faster, and get your mortgage paid off sooner? Consider refinancing with a short-term loan, like a 15-year mortgage. You will be paying less interest and increasing your equity more quickly, although your monthly payments will generally be higher than you were paying. However, if you've held your current thirty year loan for a number of years and the loan balance is relatively low, you could be do this without increasing your monthly mortgage payment — it's even possible to save! To help you understand your options and the multiple benefits in refinancing, please call us at 504-866-5626. We can help you reach your goals!
Curious about refinancing? Call us: 504-866-5626.
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