Which Refinancing Program is Best for You?
When you are overwhelmed with so many choices, it may seem as if there are even more loan programs than borrowers! We can guide you to select the refinance loan program that can fit your financial situation the best. Contact us at (985) 429-1770 to get things started. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving reduced monthly payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the right option for you. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — in which the interest rate varies. Even if interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a good choice. On the other hand, if you do see yourself moving before too long, an ARM mortgage with a small initial rate may be the ideal way to lower your monthly payments.
Is "cashing out" your main reason for refinancing? Maybe you need to make home improvements, pay your child's college tuition bill, or take a cruise. With this in mind, you'll need to get a loan for more than the balance remaining on your present mortgage loan.Then you You'll need to find a loan for a higher amount than the balance remaining on your present mortgage in that case. If you've had your current mortgage loan for a number of years and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Do you want to cash out some home equity to consolidate additional debt? Good plan! If you have the equity in your home to make it work, taking care of other high interest debt (like credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars monthly.
Switching to a Shorter Term Loan
Do you need to build up equity more quickly, and pay off your mortgage more quickly? In that case, you'll need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. You will be paying less interest and increasing your home equity faster, even though your mortgage payments will generally be higher than you were paying. But, you could be able to make the change without much increase in your monthly mortgage payment if your long term loan was closed a while ago, and the remaining balance is low. You may even pay less! To help you figure out your options and the numerous benefits of refinancing, please contact us at (985) 429-1770. We are here for you.
Want to know more about refinancing your home? Call us: (985) 429-1770.