Choosing a Refinancing Loan
When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than borrowers! Call us at (334) 285-8850 and we can match you with the refinance loan program that best fits you. What do you hope to achieve with refinancing? Considering in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are achieving better monthly payments and a better rate your main reasons for refinancing? If so, your best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage loan, even as interest rates rise. A fixed-rate mortgage is particularly a good idea if you don't plan to sell your home within the next 5 years or so. However, an ARM with a initial low payment could be a wiser way to lower your mortgage payments if you expect to move in the next few years.
Refinancing to Cash Out
Are you planning to cash out some of your equity with your refinance? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you want to find a loan for more than the remaining balance of your present mortgage.With this goal, you'll need You may not increase your mortgage payemnt, however, if you've had your existing mortgage for a while, and/or your interest rate is high.
Do you want to cash out some of your equity to consolidate additional debt? Good plan! If you have the equity in your home for it, taking care of other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars in your monthly budget.
Paying it off Sooner
Are you planning to fatten up your home equity faster, and get your mortgage paid off sooner? In that case, you'll want to look into refinancing to a short term mortgage loan - like a fifteen-year loan. The mortgage payments will probably be higher than they were with your longer term mortgage loan, but the pay-off is: that you will pay considerably less interest and can build up equity more quickly. However, if you have had your current 30-year loan for a number of years and the loan balance is somewhat low, you could be able to do this without increasing your monthly payment — it's even possible to save! To help you understand your options and the multiple benefits in refinancing, please contact us at (334) 285-8850. We are here for you.
Want to know more about refinancing? Give us a call at (334) 285-8850.