Which Refinancing Loan Program is Right for You?
There are not as many loan programs as there are borrowers, but at times it seems like it! Contact us at 504-866-5626 and we'll help you qualify for the perfect refinance program to fit your financial situation. There are some general questions to ask yourself while you review the options.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, the best choice might be a low fixed-rate loan. Perhaps you are presently in a loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is especially a wise option if you aren't expecting a move within the next 5 years or so. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? Maybe you're going on a much needed vacation; you need to pay college tuition for your child; or you are updating your kitchen. In this case, you will need to get a loan higher than the balance remaining of your current mortgage.Then you You'll be looking for a loan for more than the remaining balance of your current mortgage loan in this case. If you've had your current mortgage loan for quite a while and/or have a loan whose interest rate is high, you may be able to do this without increasing your monthly payment.
Consolidating Your Debt
Maybe you hope to pull out a portion of the equity in your home (cash out) to put toward other debt. If you own some higher interest debts (like credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have enough equity.
Building up Equity More Quickly
Are you dreaming of paying your loan off more quickly, while beefing up your equity faster? If this is your plan, your refinance loan can change you to a mortgage program with a short, such as a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your payments will usually be more than you were paying. However, if you've held your existing 30 year loan for a long time and the remaining balance is somewhat low, you could be do this without raising your monthly mortgage payment — you might even be able to save! To help you figure out your options and the many benefits in refinancing, please call us at 504-866-5626. We are here for you.
Want to know more about refinancing? Give us a call: 504-866-5626.
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