Choosing a Refinancing Loan
When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than applicants! We can help you find the loan program that can fit your needs the best. Call us at 504-866-5626 to get things started. There are several things to bear in mind as you review the options.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan might be a good choice for you. Perhaps you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the rate of interest can vary. Even when rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set the low rate for the life of your mortgage. If you expect to stay in your home for about five more years, a fixed rate loan may be an especially good fit for you. However, an ARM with a low intitial payment may be a better way to reduce your monthly payments if you expect to move within the near future.
Refinancing to Cash Out
Are you refinancing primarily to pull out some of your equity for an infusion of cash? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you want to qualify for a loan above the remaining balance on your present mortgage loan.In this case, you will You'll be looking for a loan for more than the remaining balance of your existing mortgage in that case. However, if your mortgage rate is high now and you have held it for a long time, you may be able to achieve your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you have other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have a fair amount of equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash every month.
Building up Equity Faster
Do you plan to build up home equity more quickly, and have your mortgage paid off sooner? Then, you want to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage program. Even though your mortgage payments will probably be more, you will save on interest; so your equity amount will build up faster. However, if you've had your current 30 year mortgage loan for a number of years and the loan balance is somewhat low, you might be able to do this without increasing your mortgage payment — it's even possible to save! To help you understand your options and the multiple benefits of refinancing, please contact us at 504-866-5626. We are here for you.
Curious about refinancing your home? Give us a call at 504-866-5626.
Get a Refinance Quote
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