Selecting a Refinancing Option

There aren't as many refinance loan options as there are applicants, but sometimes it feels like it! We can guide you to locate the refinance loan program that can fit your financial situation the best. Contact us at (334) 285-8850 to get started. There are some general questions to ask yourself while you consider your choices.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan may be a good choice for you. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — in which the interest rate can vary. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage, even if interest rates rise. This can be particularly a good option if you don't think you will sell your home within the next 5 years or so. However, an ARM with a low intitial payment could be a smarter way to lower your payments if you expect to move in the next few years.

Getting Out some Cash

Is "cashing out" your primary purpose for your refinance? Your house needs updating; your daughter has gone to University and needs tuition money; or you have a special family vacation planned. So you need to find a loan for more than the balance remaining on your existing mortgage loan.So you'll want to find a loan program for a higher number than the remaining balance on your present mortgage. However, if your interest rate is high now and you've had 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 want to pull out some equity to consolidate additional debt? Good idea! If you hold some higher interest debts (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have the right amount of home equity.

Building up Equity More Quickly

Are you dreaming of paying your loan off more quickly, while building up your home equity faster? Then, you'll want to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. The payments will probably be more than with the long-term mortgage loan, but in exchange, that you will pay considerably less interest and can build up equity more quickly. However, if you've had your current 30 year mortgage loan for a number of years and the loan balance is somewhat low, you could be able to do this without raising your monthly payment — it's even possible to save! To help you understand your options and the multiple benefits in refinancing, please call us at (334) 285-8850. We would love to help you reach your goals!

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

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