Choosing a Refinancing Option

Even though it may seem like it sometimes, there aren't as many refinance loan programs as there are borrowers! Contact us at (334) 285-8850 and we will match you with the refinance loan program that is best for your needs. There are some general questions to ask yourself as you consider the choices.

Making Your Payments Lower

Are getting better payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the ideal option for you. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — with which the rate of interest varies. Even when rates come up later, unlike with your ARM, when you close a fixed rate mortgage, you lock in that low rate for the life of your loan. If you are not expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a wise loan option. However, if you do see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate may be the ideal way to bring down your monthly payments.

Refinancing to Cash Out

Is your refinance goal primarily to "cash out" some home equity? It could be you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you'll need to apply for a loan for more than the balance remaining on your existing mortgage loan.So you need However, if your loan interest rate is currently high and you have held it for a long time, you could be able to reach your goals without making your monthly payments increase.

Consolidating Debt

Do you hold other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have the home equity for it, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars a month.

Paying it off Sooner

Are you dreaming of paying your loan off sooner, while building up your home equity faster? Then, you need to look into refinancing to a short term mortgage loan - such as a fifteen-year loan. You will be paying less interest and increasing your equity more quickly, although your mortgage payments will likely be higher than you were paying. However, if you have had your existing 30 year mortgage loan for a number of years and the loan balance is somewhat low, you could be do this without raising your monthly mortgage payment — you may even be able to save! To help you determine your options and the many benefits of refinancing, please contact us at (334) 285-8850. We are here for you.

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

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