Refinancing: Which Loan Program is for You?
There aren't as many refinance loan options as there are borrowers, but it seems like it sometimes! We can help you select the refinance program that can fit your needs the best. Call us at 504-866-5626 to get things started. There are several things to keep in mind while you look at the choices.
Making Your Payments Lower
Are achieving lower payments and a better rate your main refinance goals? If so, applying for a low, fixed-rate loan may be a wise option for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you get a mortgage with a fixed rate, you set that low rate for the term of your mortgage. If you are not planning on moving in the near future (about five years), a fixed rate mortgage loan can especially be a good option. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Are you refinancing primarily to pull out some equity for an infusion of cash? It could be you're planning a special vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. So you'll want to qualify for a loan above the remaining balance on your existing mortgage loan.With this goal, you You will need to apply for a loan for a higher amount than the current balance on your present mortgage in that case. If you've had your current mortgage loan for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Consolidating Your Debt
Do you want to cash out a portion of your home equity to consolidate additional debt? Good plan! If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars monthly.
Paying it off Sooner
Do you want to build up home equity quicker, and have your mortgage paid off faster? In that case, you'll want to find out about refinancing to a short term mortgage - for example, a fifteen-year loan. You will be paying less interest and increasing your home equity faster, although your payments will usually be bigger than you have been paying. On the other hand, if your existing longer term mortgage has a small balance remaining, and was closed a number of years ago, you could be able to make the change 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 your home? Call us: 504-866-5626.
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