Which Refinancing Option is Best for You?
There are an enormous number of refinancing options available to borrowers. Contact us at (334) 285-8850 and we can help you qualify for the perfect refinance loan program to fit your needs. In order to review your options, you should list what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are achieving better mortgage payments and a better rate your main reasons for refinancing? If so, getting a low, fixed-rate loan could be a wise choice for you. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even as interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you aren't expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great option. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Is your refinance goal primarily to pull out some home equity for an infusion of cash? It could be you need to update your kitchen, take care of your college kid's tuition, or take your family on a dream vacation. Then you want to apply for a loan for more than the remaining balance of your present mortgage.In this case, you'll want to need to qualify for a loan for a bigger amount than the balance remaining on your current mortgage. You may not increase your monthly payemnt, however, if you have had your existing mortgage for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to pull out some home equity to consolidate additional debt? Great plan! If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars in your monthly budget.
Getting a Shorter Term Loan
Do you want to build up equity more quickly, and have your mortgage paid off more quickly? Then, you'll need to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. You will be paying less interest and growing your home equity more quickly, even though your mortgage payments will likely be higher than they were. But, you might be able to switch without a bigger monthly payment if your longer term mortgage loan was closed a while ago, and the balance remaining is somewhat low. You could even pay less! To help you understand your options and the numerous benefits of refinancing, please contact us at (334) 285-8850. We are here to help you reach your goals!
Want to know more about refinancing? Give us a call at (334) 285-8850.