Refinancing: Which Loan Program is for You?

The number of refinance options available can be overwhelming. We can guide you to locate the refinance loan program that can fit your situation the best. Contact us at (334) 285-8850 to begin the process. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you narrow your choices.

Reducing Your Monthly Payments

Are getting better mortgage payments and a better rate your main refinance goals? In that case, applying for a low, fixed-rate loan may be a wise choice for you. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Even when rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in the low rate for the life of your mortgage. This can be especially a good option if you aren't planning a move within the next five years or so. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced payments.

Cashing Out

Are you planning to cash out some of your equity in your refinance? Perhaps you need to make home improvements, pay your child's college tuition bill, or go on a special family vacation. With this in mind, you need to qualify for a loan for more than the remaining balance on your current mortgage loan.In this case, you need However, if your mortgage rate is high now and you've had it for quite a few years, you could be able to reach your goals without a rise in your mortgage payment.

Debt Consolidation

Do you have other debt, perhaps with a high interest rate, that you want to consolidate? If you have the home equity to make it work, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars monthly.

Building up Equity Faster

Are you hoping to fatten your home equity faster, and pay off your mortgage loan sooner? Then, you'll need to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. Your monthly payments will likely be more than with your longer term mortgage, but the pay-off is: that you will pay quite a bit less interest and will build up equity more quickly. Conversely, if your current longer term loan has a small remaining balance, and was closed a while ago, you may even be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please contact us at (334) 285-8850. We are here to help you reach your goals!

Curious about refinancing your home? Give us a call: (334) 285-8850.

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