Refinancing: Which Program is for You?
Although it may seem like it at times, there are not as many refinance choices as there are borrowers! Contact us at (334) 285-8850 and we can work with you to qualify you for the best refinance program to fit your needs. There are several questions to ask yourself as you review the options.
Making Your Payments Lower
Are achieving reduced mortgage payments and an improved rate your main refinance goals? In that case, your best option could be a low fixed-rate loan. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. This kind of loan is particularly a good idea if you aren't expecting a move within the next 5 years or so. However, an ARM with a low intitial payment may be a wiser way to reduce your mortgage payments if you see yourself moving within the near future.
Getting Out some Cash
Are you hoping to cash out some of your home equity in your refinance? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. With this in mind, you'll want to find a loan above the balance remaining on your existing mortgage loan.Then you You'll need to apply for a loan for a bigger amount than the remaining balance on your present home loan in this case. You may not have an increase in your mortgage payemnt, though, if you've had your existing mortgage loan for a while, and/or your interest rate is high.
Do you want to cash out some home equity to consolidate additional debt? Excellent idea! If you hold some debt with high interest (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have enough equity.
Getting a Shorter Term Loan
Are you wanting to fatten your equity faster, and pay your mortgage off more quickly? You should consider refinancing to a shorterterm loan, like a 15-year mortgage. You will be paying less interest and growing your equity more quickly, although your monthly payments will likely be bigger than you have been paying. On the other hand, if your current long-term mortgage has a low balance remaining, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you figure out your options and the many benefits of refinancing, please contact us at (334) 285-8850. We are here for you.
Curious about refinancing? Give us a call: (334) 285-8850.