Refinancing: Which Loan Program is for You?
There are an enormous number of refinancing programs available to borrowers. Contact us at 504-866-5626 and we can match you with the loan program that is ideal for your needs. There are several things to have in mind while you review the choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan might be a good choice for you. Perhaps you currently have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Even when rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you lock in that low rate for the life of your loan. This can be especially a wise choice if you aren't expecting a move within the next five years or so. On the other hand, if you can see yourself selling your home within several years, an adjustable rate mortgage with a low initial rate may be the best way to bring down your monthly payment.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some home equity for an infusion of cash? Maybe you need to pay for home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. Then you'll need to find a loan higher than the balance remaining of your present mortgage loan.So you'll want to find a loan for a higher number than the balance remaining on your current mortgage. If you've had your existing mortgage loan for quite a while and/or have a mortgage with high interest, you might\could be able to do this without making your monthly payment higher.
Do you have other debt, maybe with higher interest, that you need to consolidate? If you hold some higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have enough equity.
Building up Equity More Quickly
Do you plan to build up home equity quicker, and pay off your mortgage sooner? If this is your wish, the refinance can change you to a mortgage program with a short, like a 15 year loan. Although your monthly payments will likely be increased, you will save on interest; so your equity amount will rise up faster. But, you could be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the balance remaining is low. You could even make it lower! To help you figure out 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? Call us 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.