Which Refinancing Loan Program is Right for You?
There aren't as many refinance loan options as there are borrowers, but it seems like it sometimes! Call us at 504-866-5626 and we can match you with the loan program that is best for your needs. There are several questions to ask yourself as you review the choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your loan, even as interest rates rise. If you are not planning on moving in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good option. However, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate could be the ideal way to bring down your monthly payments.
Is "cashing out" your primary reason for your refinance? Your house needs renovating; your daughter has been accepted to college and needs tuition money; or you have a special family vacation planned. So you will want to apply for a loan above the remaining balance on your current mortgage loan.In this case, you'll want to need to get a loan program for a higher number than the remaining balance on your current mortgage. If you've had your existing mortgage for a long time and/or have a loan with high interest, you may be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Do you want to pull out some of your home equity to consolidate additional debt? Good plan! If you have the equity in your home to make it work, taking care of other high interest debt (like credit cards, home equity loans, or car loans) means you can save possibly several hundred dollars monthly.
Paying it off Sooner
Are you wanting to fatten your home equity faster, and pay off your mortgage loan more quickly? You should consider refinancing to a short-term loan, often a 15-year mortgage. Your mortgage payments will likely be higher than they were with your longer term mortgage, but the pay-off is: you will pay quite a bit less interest and will build up equity more quickly. However, if you have held your current 30-year mortgage loan for a long time and the loan balance is relatively low, you may be able to do this without increasing your monthly payment — you could even be able to save! To help you determine your options and the multiple benefits of refinancing, please call us at 504-866-5626. We are here for you.
Want to know more about refinancing your home? Call us: 504-866-5626.
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