Choosing a Refinancing Loan
There are not as many loan program choices as there are applicants, but at times it seems like it! Call us at 504-866-5626 and we can help you qualify for the best refinance loan to fit your situation. In order to review your choices, you need to determine what you want to achieve with the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then your best option might be a low fixed-rate loan. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low interest rate for the term of your mortgage. If you are not expecting to move in the near future (about 5 years), a fixed-rate mortgage can especially be a great loan option. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate to get reduced monthly payments.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity in your refinance? Perhaps you're dreaming of a cruise; you have to pay college tuition for your child; or you plan to renovate your home. With this in mind, you'll need to find a loan for more than the balance remaining on your existing mortgage.With this goal, you'll You will be looking for a loan for a bigger amount than the balance remaining on your existing home loan in this case. You might not have an increase in your monthly payemnt, however, if you've had your current mortgage loan for a while, and/or your interest rate is high.
Do you want to pull out some equity to consolidate additional debt? Good idea! If you have built up some home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a lot of cash every month.
Building up Equity More Quickly
Do you hope to build up equity more quickly, and have your mortgage paid off faster? Consider refinancing to a short-term loan, often a 15-year mortgage loan. Although your monthly payment amount will likely be increased, you will be paying less interest; so your equity will build up faster. But, you may be able to make the change without a bigger monthly payment if your longer term mortgage loan was closed a while ago, and the remaining balance is somewhat low. You could even pay less! To help you figure out your options and the numerous benefits in refinancing, please contact us at 504-866-5626. We are here for you.
Want to know more about refinancing? Give us a call at 504-866-5626.
Get a Refinance Quote
Looking to refinance your home? Fill out the following form to get a fast quote from us.