Which Refinancing Program is Best for You?
The huge number of refinance options available can be overwhelming. We can guide you to find the refinance program that can fit your situation the best. Call us at 504-866-5626 to get started. There are several questions to ask yourself while you consider the choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a good choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even if rates get higher later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in that low rate for the term of your loan. This can be especially a wise idea if you aren't expecting a move within the next 5 years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Refinancing to Cash Out
Are you planning 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. In this case, you need to get a loan higher than the balance remaining on your current mortgage loan.Then you You will be looking for a loan for a bigger amount than the current balance on your existing mortgage in that case. If you've had your current mortgage for a long time and/or have a mortgage loan whose interest rate is high, you might\could be able to do this without making your monthly payment higher.
Do you want to cash out a portion of your home equity to consolidate other debt? Good plan! If you have any debt with higher interest (like credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of equity.
Paying it off Sooner
Are you hoping to fatten up your home equity faster, and get your mortgage paid off more quickly? Then, you'll want to look into refinancing to a short term mortgage loan - such as a fifteen-year loan. Even though your monthly payments will probably be more, you will be paying less interest; so your equity amount will build up faster. But, you could be able to switch without a bigger monthly mortgage payment if your longer term loan was closed a while back, and the balance remaining is low. You may even pay less! To help you understand your options and the numerous 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.
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