Refinancing: Which Option is for You?

There aren't as many refinance loan options as there are borrowers, but at times it seems like it! Contact us at (334) 285-8850 and we can match you with the refinance program that best fits you. There are some general questions to ask yourself as you review the options.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the right loan program for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the loan, even if interest rates rise. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can especially be a great option. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced payments.

Cashing Out

Is your refinance goal mainly to pull out some of your home equity for an infusion of cash? Your home needs renovating; your son has gone to college and needs tuition; or you are planning a special vacation. Then you will want to find a loan for more than the remaining balance of your existing mortgage loan.In this case, you need You may not have an increase in your monthly payemnt, however, if you've had your existing loan for a long time, and/or your loan interest rate is high.

Debt Consolidation

Maybe you'd like to cash out some equity (cash out) to put toward other debt. If you hold any debt with high interest (such as credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough equity.

Building up Equity Faster

Are you planning to fatten up your equity faster, and pay your mortgage loan off sooner? Then, you'll want to find out about refinancing to a short term mortgage loan - like a fifteen-year loan. Your mortgage payments will probably be more than with a long-term loan, but the pay-off is: that you will pay considerably less interest and will build up equity more quickly. On the other hand, if your current longer term mortgage has a low balance remaining, and was closed a while ago, you may even be able to make the move without paying more each month. To help you understand your options and the multiple benefits of refinancing, please call us at (334) 285-8850. We are here for you.

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

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