Which Refinancing Loan Program is Best for You?
There aren't as many loan options as there are borrowers, but sometimes it feels like it! Contact us at 504-866-5626 and we will match you with the refinance loan program that is best for your needs. There are several things to have in mind while you consider your options.
Making Your Payments Lower
Are achieving reduced payments and a lower rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the term of your mortgage. This is particularly a good idea if you don't think you'll be moving within the next 5 years or so. On the other hand, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate may be the ideal way to reduce your monthly payments.
Refinancing to Cash Out
Are you planning to cash out some of your equity in your refinance? Your house needs renovating; your daughter has been accepted to college and needs tuition money; or you have a special family vacation planned. So you'll want to get a loan above the remaining balance on your present mortgage loan.Then you will want to qualify for a loan for a higher number than the remaining balance on your present mortgage. You might not have an increase in your mortgage payemnt, however, if you've had your current loan for a while, and/or your interest rate is high.
Maybe you'd like to pull out some home equity (cash out) to use toward other debt. If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars monthly.
Building up Equity Faster
Do you plan to build up equity quicker, and have your mortgage paid off more quickly? Consider refinancing to a short-term loan, like a 15-year mortgage. The payments will probably be higher than they were with a long-term mortgage loan, but in exchange, you will pay substantially less interest and can build up equity more quickly. Conversely, if your existing long-term mortgage has a low balance remaining, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you determine your options and the many 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 at 504-866-5626.
Get a Refinance Quote
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