Choosing a Refinancing Loan
There are not as many loan program choices as there are applicants, but it feels like it sometimes! Contact us at 504-866-5626 and we'll work with you to qualify you for the perfect refinance loan program for your situation. There are several things to keep in mind as you consider the choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, the best choice could be a low fixed-rate loan. Maybe you now hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — in which the interest rate can vary. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage loan, even as interest rates rise. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great option. On the other hand, if you do see yourself moving before too long, an adjustable rate mortgage with a small initial rate may be the best way to reduce your monthly payment.
Getting Out some Cash
Are you hoping to cash out some of your home equity in your refinance? Your house needs improvements; your son has been accepted to college and needs tuition; or you are planning a special vacation. In this case, you will need to get a loan above the balance remaining of your current mortgage loan.Then you want to find a loan for a bigger number than the balance remaining on your present mortgage. If you've had your current mortgage for quite a while and/or have a loan with high interest, you might\could be able to do this without making your mortgage payment higher.
Consolidating Your Debt
Maybe you want to pull out a portion of the equity in your home (cash out) to use toward other debt. If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Building up Equity Faster
Are you planning to fatten up your home equity faster, and get your mortgage paid off sooner? Then, you'll want to look into refinancing to a short term mortgage - for example, a fifteen-year loan. The monthly payments will likely be more than they were with your longer term mortgage, but in exchange, that you will pay quite a bit less interest and will build up equity more quickly. On the other hand, if your existing longer term loan has a small balance remaining, and was closed a while ago, you could be able to make the switch without paying more each month. To help you determine your options and the numerous benefits in refinancing, please contact us at 504-866-5626. We are here to help you reach your goals!
Curious about refinancing? Give us a call: 504-866-5626.
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