Which Refinancing Option is Best for You?
There aren't as many refinance loan programs as there are applicants, but at times it seems like it! Call us at 504-866-5626 and we will match you with the refinance loan program that is ideal for your needs. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are getting reduced payments and a better rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan could be a wise option for you. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even if interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. If you are planning to stay in your home for at least five more years, a fixed-rate loan may be a particulary good option for you. 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 mortgage payments.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Perhaps you want to pay for home improvements, take care of your college kid's tuition, or take your family on a dream vacation. So you'll need to qualify for a loan above the remaining balance of your present mortgage.With this goal, you will want to need to qualify for a loan program for a higher number than the balance remaining on your existing mortgage. You might not have an increase in your monthly payemnt, though, if you have had your existing mortgage loan for a number of years, and/or your interest rate is high.
Do you hold other debt, maybe with higher interest, that you need to consolidate? If you have the home equity 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 hundreds of dollars a month.
Paying it off Sooner
Are you planning to fatten up your equity faster, and get your mortgage paid off more quickly? Then, you need to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. You will be paying less interest and growing your equity more quickly, although your monthly payments will usually be more than you have been paying. Conversely, if your current long-term loan has a low remaining balance, and was closed a number of years ago, you may be able to make the switch without paying more each month. To help you determine your options and the numerous benefits of refinancing, please call us at 504-866-5626. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call at 504-866-5626.