Refinancing: Which Loan Program is for You?

Although it may seem like it sometimes, there are not as many refinance choices as there are applicants! Call us at (334) 285-8850 and we can match you with the refinance program that is ideal for you. There are several questions to ask yourself as you review your choices.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you currently hold a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage, even as interest rates rise. If you plan to stay in your home for at least five more years, a fixed rate mortgage may be an especially good option for you. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower payments.

Cashing Out

Is "cashing out" your main reason for refinancing? Your home needs renovating; your daughter has been accepted to college and needs tuition; or you are planning a special vacation. With this in mind, you will want to find a loan higher than the remaining balance of your existing mortgage.In this case, you want to find a loan for a bigger amount than the remaining balance on your present mortgage. However, if your interest rate is currently high and you've held it for a long time, you could be able to achieve your goals without an increase in your mortgage payment.

Consolidating Your Debt

Do you hold other debt, perhaps with higher interest, that you want to consolidate? If you have some debt with steep interest (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the equity built up to make it work.

Getting a Shorter Term Loan

Do you hope to build up equity quicker, and have your mortgage paid off faster? If this is your goal, your refinance loan can move you to a mortgage loan program with a short, such as a 15 year loan. Although your mortgage payments will probably be increased, you can save on interest; so your home equity will build up faster. But, you may be able to switch without a bigger monthly payment if your long term mortgage loan was closed a while ago, and the balance remaining is small. You may even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at (334) 285-8850. We are here for you.

Curious about refinancing? Call us at (334) 285-8850.

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