Refinancing: Which Option is for You?
The number of refinance options available to borrowers can be overwhelming. Contact us at (334) 285-8850 and we can help you qualify for the right refinance loan program to fit your financial situation. surveying your choices, you'll need to consider what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a good option could be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — in which the interest rate can vary. Even if rates get higher later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set the low rate for the life of your loan. This kind of loan is particularly a wise option if you don't think you'll be selling your home within the next five years or so. However, an ARM with a initial low payment could be a better way to lower your monthly payments if you plan on moving in the near future.
Refinancing to Cash Out
Is "cashing out" your primary reason for refinancing? Perhaps you want to pay for home improvements, pay your child's college tuition bill, or take a cruise. In this case, you'll need to look for a loan above the remaining balance of your current mortgage loan.So you'll need If you've had your current mortgage for quite a while and/or have a mortgage with high interest, you might\could be able to do this without making your mortgage payment higher.
Consolidating Your Debt
Perhaps you'd like to pull out a portion of the equity (cash out) to put toward other debt. If you have built up some home equity, paying off other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a lot of money every month.
Paying it off Sooner
Do you hope to build up equity more quickly, and pay off your mortgage sooner? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage. Even though your monthly payment amount will probably be increased, you can save on interest; so your equity amount will build up faster. But, you could be able to make the change without much increase in your monthly payment if your longer term mortgage was closed a while back, and the remaining balance is small. You may even pay less! To help you understand your options and the multiple benefits in refinancing, please contact us at (334) 285-8850. We are here for you.
Want to know more about refinancing? Call us at (334) 285-8850.