Refinancing: Which Option is for You?
There aren't as many loan program choices as there are borrowers, but at times it feels like it! Contact us at 504-866-5626 and we can match you with the refinance loan program that best fits you. What do you hope to achieve with your refinance loan? Considering in mind the following will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan may be a wise option for you. Perhaps you now hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage loan, even when interest rates rise. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can particularly be a good choice. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Are you refinancing primarily to "cash out" some home equity? It could be you want to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. In this case, you want to qualify for a loan above the balance remaining of your existing mortgage.In this case, you will need If you've had your existing mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without making your monthly payment higher.
Do you want to pull out a portion of your equity to consolidate additional debt? Excellent idea! If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you can possible save several hundred dollars monthly.
Building up Equity Faster
Are you planning to fatten up your home equity faster, and pay off your mortgage more quickly? If this is your wish, your refinance mortgage can switch you to a mortgage program with a short, for example: a 15 year loan. Although your monthly payment amount will usually be more, you will be paying less interest; so your equity will build up faster. On the other hand, if your current longer term loan has a low balance remaining, and was closed a number of years ago, you may even be able to make the change without paying more each month. To help you understand your options and the many benefits in refinancing, please contact us at 504-866-5626. We are here for you.
Curious about refinancing? Call us: 504-866-5626.
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