Which Refinancing Loan Program is Right for You?
There aren't as many loan program choices as there are applicants, but sometimes it seems like it! We can help you choose the loan program that can fit your situation the best. Contact us at (334) 285-8850 to get things started. What are your goals for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if rates come up later, unlike with your ARM, when you get a fixed rate mortgage, you lock in the low rate for the term of your loan. If you plan to stay in your home for at least five more years, a loan with a fixed rate may be a particulary good fit for you. However, an ARM with a low intitial payment may be a wiser way to lower your mortgage payments if you expect to move within the near future.
Getting Out some Cash
Is your refinance goal mainly to pull out some equity for an infusion of cash? Maybe you're going on a much needed vacation; you need to pay college tuition for your child; or you plan to renovate your home. With this in mind, you will want to look for a loan higher than the remaining balance on your current mortgage loan.So you will You will be looking for a loan for more than the remaining balance with your existing mortgage in that case. You may not have an increase in your monthly payemnt, however, if you've had your existing mortgage loan for a long time, and/or your interest rate is high.
Perhaps you'd like to pull out a portion of the home equity (cash out) to use toward other debt. If you hold any debt with higher interest (like credit cards or car loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have enough equity.
Building up Equity More Quickly
Are you dreaming of paying off your loan more quickly, while beefing up your home equity quicker? You should consider refinancing with a short-term loan, such as a 15-year mortgage loan. You will be paying less interest and increasing your equity more quickly, although your monthly payments will generally be more than you have been paying. However, if you have held your current thirty-year mortgage loan for a long time and the loan balance is relatively low, you might be able to do this without raising your mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits in refinancing, please call us at (334) 285-8850. We are here for you.
Want to know more about refinancing your home? Give us a call at (334) 285-8850.