Refinancing: Which Loan Program is for You?
When you are overwhelmed with so many options, it may seem as if there are even more loan programs than borrowers! Contact us at 504-866-5626 and we can match you with the refinance program that best fits you. What are your reasons for your refinance loan? Keeping in mind the following will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best choice could be a low fixed-rate loan. Perhaps you currently hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even when interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you aren't expecting to move in the near future (about five years), a fixed-rate mortgage can especially be a great option. However, an ARM with a initial low payment could be a smarter way to reduce your mortgage payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Is your refinance goal primarily to "cash out" some home equity? Your home needs updating; your daughter has been accepted to University and needs tuition; or you are taking your family on a cruise. In this case, you want to find a loan for more than the remaining balance of your current mortgage.So you'll You will want to qualify for a loan for a bigger amount than the remaining balance on your present mortgage in that case. You might not have an increase in your monthly payemnt, however, if you have had your current mortgage loan for a long time, and/or your loan interest rate is high.
Maybe you'd like to cash out some equity in your home (cash out) to use toward other debt. If you have built up some home equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) could be able to save you a lot of money each month.
Building up Equity More Quickly
Do you hope to build up home equity more quickly, and have your mortgage paid off more quickly? If this is your goal, the refinance can change you to a mortgage program with a shorter term, like a 15 year loan. Although your mortgage payment amount will probably be increased, you can be paying less interest; so your home equity will build up faster. On the other hand, if your current long-term mortgage loan has a low remaining balance, and was closed a while ago, you may be able to make the move without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please call us at 504-866-5626. We are here for you.
Want to know more about refinancing? Give us a call: 504-866-5626.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.