Selecting a Refinancing Option
Although it may seem like it at times, there aren't as many loan options as there are applicants! Call us at 504-866-5626 and we can match you with the loan program that best fits you. In order to review your choices, you need to think about 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 choice may be a low fixed-rate loan. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even if 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 mortgage. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can particularly be a great loan option. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower monthly payments.
Refinancing to Cash Out
Are you planning to cash out some of your equity in your refinance? Your home needs new carpet; your daughter has been accepted to college and needs tuition; or you have a special family vacation planned. Then you'll want to find a loan for more than the remaining balance of your current mortgage loan.So you want to qualify for a loan for a higher amount than the balance remaining on your present mortgage. However, if your loan interest rate is currently high and you have held it for quite a few years, you may be able to achieve your goals without an increase in your mortgage payment.
Do you have other debt, maybe with high interest, that you'd like to consolidate? If you have the home equity for it, taking care of other high interest debt (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars in your budget each month.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while building up your equity faster? If this is your wish, your refinance can change you to a mortgage loan program with a shorter term, such as a 15 year loan. Although your monthly payment amount will likely be more, you will save on interest; so your equity will build up faster. But, you might be able to make the change without a bigger monthly payment if your long term loan was closed a while back, and the remaining balance is low enough. You may even pay less! To help you figure out your options and the many benefits in refinancing, please contact us at 504-866-5626. We would love to help you reach your goals!
Curious 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.