Refinancing: Which Option is for You?
When you are overwhelmed with so many choices, it may seem like there are even more refinance programs than borrowers! Contact us at (985) 429-1770 and we will match you with the loan program that best fits you. surveying your options, you should think about what you want to achieve with the refinance.
Lowering Your Payments
Are achieving reduced mortgage payments and a lower rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even as interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage can be especially a good choice if you aren't planning a move within the next five years or so. On the other hand, if you do see yourself selling your home before too long, an ARM with a low initial rate may be the ideal way to bring down your monthly payment.
Getting Out some Cash
Are you hoping to cash out some of your home equity in your refinance? Your house needs improvements; your son has gone to college and needs tuition; or you are taking your family on a cruise. Then you need to qualify for a loan higher than the remaining balance on your present mortgage.Then you want If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Do you want to pull out a portion of your equity to consolidate other debt? Great plan! If you have a fair amount of home equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) may be able to save you a lot of cash each month.
Paying it off Faster
Do you want to build up home equity more quickly, and pay off your mortgage faster? If this is your plan, the refinance mortgage can switch you to a mortgage program with a shorter term, like a 15 year loan. You will be paying less interest and growing your equity faster, even though your mortgage payments will generally be more than they were. However, if you've held your existing thirty year loan for a long time and the loan balance is somewhat low, you might be do this without raising your mortgage payment — you could even be able to save! To help you determine your options and the multiple benefits in refinancing, please call us at (985) 429-1770. We are here for you.
Curious about refinancing? Call us: (985) 429-1770.