Refinancing: Which Loan Program is for You?
There are not as many refinance loan programs as there are applicants, but it seems like it at times! We can help you select the loan program that will fit your needs the best. Contact us at 504-866-5626 to get things started. surveying your options, you can think about your goals for your refinance.
Lowering Your Payments
Are getting lower payments and an improved rate your main refinance goals? In that case, a low, fixed rate loan may be your best option. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the loan, even if interest rates rise. If you are expecting to stay in your home for about five more years, a loan with a fixed rate may be an especially good choice for you. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Getting Out some Cash
Is your refinance goal primarily to "cash out" some home equity? It could be you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. With this in mind, you'll need to look for a loan above the balance remaining of your existing mortgage loan.Then you will want If you've had your current mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Do you hold other debt, perhaps with high interest, that you'd like to consolidate? If you have the equity in your home for it, paying off other high interest debt (for example: home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars in your monthly budget.
Paying it off Sooner
Are you hoping to fatten your home equity faster, and pay your mortgage off sooner? If this is your hope, your refinance can move you to a mortgage loan program with a short, for example: a 15 year loan. The mortgage payments will probably be more than they were with the long-term loan, but in exchange, you will pay substantially less interest and will build up equity quicker. But, you might be able to switch without much increase in your monthly payment if your long term loan was closed a while ago, and the balance remaining is small. You may even make it lower! To help you figure out your options and the numerous benefits in refinancing, please call us at 504-866-5626. We would love to help you reach your goals!
Curious about refinancing your home? Give us a call at 504-866-5626.