Refinancing: Which Option is for You?
There are not as many refinance loan options as there are borrowers, but it seems like it at times! We can guide you to find the refinance program that will fit your situation the best. Call us at 504-866-5626 to begin the process. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are achieving lower mortgage payments and a lower rate your main reasons for refinancing? Then a low, fixed rate loan may be the best option for you. Maybe you currently hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the interest rate varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your loan, even when interest rates rise. This can be particularly a good option if you don't think you'll be selling your home within the next five years or so. However, if you can see yourself moving within the next few years, an ARM mortgage with a small initial rate may be the best way to lower your monthly payments.
Getting Out some Cash
Is "cashing out" your primary purpose for refinancing? Your home needs improvements; your daughter has gone to college and needs tuition money; or you are planning a special vacation. So you want to get a loan for more than the remaining balance on your existing mortgage.With this goal, you'll You will want to qualify for a loan for more than the current balance of your present mortgage loan in this case. However, if your interest rate is high now and you have held it for quite a few years, you could be able to achieve your goals without making your monthly payments increase.
Perhaps you want to pull out some of the equity in your home (cash out) to use toward other debt. If you have some debt with steep interest (such as credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough home equity.
Paying it off Faster
Do you plan to build up home equity more quickly, and pay off your mortgage faster? If this is your goal, your refinance mortgage can change you to a mortgage loan program with a shorter term, like a 15 year loan. Although your monthly payment amount will probably be more, you will be paying less interest; so your home equity will rise up faster. However, if you've held your current thirty-year mortgage loan for a long time and the remaining balance is rather low, you could be do this without increasing your monthly mortgage payment — it's even possible to save! To help you figure out your options and the many benefits of refinancing, please contact us at 504-866-5626. We can help you reach your goals!
Curious about refinancing? Give us a call: 504-866-5626.
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