Which Refinancing Loan Program is Best for You?

There are an enormous number of refinancing options available to borrowers. Call us at (334) 285-8850 and we can match you with the refinance program that is ideal for your needs. There are some general questions to ask yourself as you consider the options.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? In that case, a good option may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set the low rate for the term of your mortgage. This kind of loan is especially a wise choice if you don't think you'll be moving within the next 5 years or so. However, if you can see yourself moving in the near future, an ARM with a low initial rate could be the ideal way to bring down your monthly payments.

Cashing Out

Is your refinance goal mainly to "cash out" some home equity? It could be you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you need to qualify for a loan above the remaining balance on your current mortgage.In that case, you will want to need to qualify for a loan program for a higher amount than the balance remaining on your existing mortgage. If you've had your existing mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without making your mortgage payment bigger.

Debt Consolidation

Maybe you hope to pull out some home equity (cash out) to put toward other debt. If you have any higher interest debts (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 the right amount of equity.

Paying it off Sooner

Do you hope to build up equity more quickly, and have your mortgage paid off more quickly? In that case, you want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. The payments will probably be higher than with the long-term loan, but in exchange, that you will pay considerably less interest and can build up equity quicker. However, if you've had your existing 30-year mortgage for a long time and the remaining balance is relatively low, you could be able to do this without increasing your monthly mortgage payment — you may even be able to save! To help you figure out your options and the many benefits of refinancing, please call us at (334) 285-8850. We will help you reach your goals!

Want to know more about refinancing your home? Give us a call: (334) 285-8850.

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