Which Refinancing Loan Program is Right for You?
Although it may seem like it at times, there are not as many loan programs as there are applicants! We can help you find the loan program that will fit your financial situation the best. Call us at 504-866-5626 to begin the process. What do you hope to achieve with your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then your best option may be a low fixed-rate loan. Maybe you are presently in a mortgage with a high, fixed interest rate, or a loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. A fixed-rate mortgage can be especially a wise choice if you aren't expecting a move within the next five years or so. However, an ARM with a initial low payment could be a better way to lower your monthly payments if you expect to move within the near future.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? Your home needs updating; your daughter has been accepted to University and needs tuition; or you have a special family vacation planned. So you will want to qualify for a loan higher than the remaining balance of your current mortgage loan.With this goal, you will want to need to find a loan program for a bigger amount than the remaining balance on your current mortgage. However, if your interest rate is high now and you've had it for quite a few years, you may be able to reach your goals without making your monthly payments higher.
Consolidating Your Debt
Do you hold other debt, perhaps with a higher interest rate, that you'd like to consolidate? If you have a fair amount of home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of cash each month.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while building up your home equity faster? Then, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. You will be paying less interest and increasing your home equity more quickly, although your mortgage payments will likely be bigger than they were. But, you might be able to make the change without a higher monthly mortgage payment if your longer term loan was closed a while back, and the balance remaining is small. You could even make it lower! To help you figure out your options and the multiple benefits of refinancing, please call us at 504-866-5626. We are here for you.
Want to know more about refinancing your home? Give us a call at 504-866-5626.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.