Which Refinancing Option is Right for You?
There are an enormous number of refinancing programs available to borrowers. Contact us at 504-866-5626 and we can help you qualify for the perfect loan program to fit your needs. In the interest of looking at your options, you can think about your goals for the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Maybe you currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — in which the rate of interest can vary. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the loan, even as interest rates rise. This can be especially a good idea if you aren't planning a move within the next 5 years or so. However, an ARM with a low intitial payment could be a wiser way to reduce your monthly payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Are you refinancing primarily to "cash out" some home equity? It could be you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you'll want to qualify for a loan higher than the balance remaining on your existing mortgage.So you will want to find a loan for a higher number than the remaining balance on your existing mortgage loan. However, if your mortgage rate is currently high and you have held it for a long time, you may be able to reach your goals without a rise in your mortgage payment.
Do you have other debt, maybe with a high interest rate, that you'd like to consolidate? If you have enough equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of money each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan faster, while building up your equity more quickly? You should consider refinancing with a short-term loan, like a 15-year mortgage. Although your mortgage payments will likely be more, you can be paying less interest; so your equity will build up faster. But, you might be able to switch without a higher monthly payment if your long term mortgage loan was closed a while back, and the remaining balance is somewhat low. You may even pay less! To help you determine your options and the multiple benefits in refinancing, please call us at 504-866-5626. We will help you reach your goals!
Curious about refinancing your home? Give us a call: 504-866-5626.
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