Selecting a Refinancing Loan

There aren't as many loan program choices as there are applicants, but it seems like it sometimes! Contact us at (985) 429-1770 and we can match you with the refinance loan program that best fits you. In the interest of looking at your options, you need to determine your goals for your refinance.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? In that case, a good choice might be a low fixed-rate loan. Perhaps you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the interest rate varies. Even when rates get higher later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in the low interest rate for the life of your loan. If you aren't expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great choice. On the other hand, if you do see yourself moving in the near future, an adjustable rate mortgage with a small initial rate might be the ideal way to reduce your monthly payment.

Getting Out some Cash

Are you hoping to cash out some of your equity with your refinance? It could be you're planning a special vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. So you will want to find a loan higher than the remaining balance on your current mortgage loan.With this goal, you need However, if your interest rate is currently high and you have held it for a long time, you may be able to reach your goals without an increase in your mortgage payment.

Consolidating Debt

Do you have other debt, perhaps with a higher interest rate, that you need to consolidate? If you have built up some home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a lot of cash each month.

Paying it off Sooner

Do you want to build up equity quicker, and have your mortgage paid off sooner? Consider refinancing with a short-term loan, such as a 15-year mortgage loan. Although your monthly payment amount will probably be more, you can save on interest; so your equity amount will build up faster. On the other hand, if your existing longer term mortgage loan has a low balance remaining, and was closed a number of years ago, you could be able to make the switch without paying more each month. To help you figure out your options and the numerous benefits in refinancing, please contact us at (985) 429-1770. We are here for you.

Want to know more about refinancing? Give us a call: (985) 429-1770.

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