Refinancing: Which Loan Program is for You?
When you are overwhelmed with so many choices, it may seem like there are even more refinance programs than borrowers! Contact us at (337) 453-0012 and we can match you with the refinance program that is ideal for your needs. There are several things to bear in mind while you consider the choices.
Making Your Payments Lower
Are getting better mortgage payments and an improved rate your main refinance goals? If so, getting a low, fixed-rate loan might be a good option for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the loan, even as interest rates rise. A fixed-rate mortgage can be especially a good choice if you aren't planning a move within the next five years or so. However, if you do see yourself moving within several years, an adjustable rate mortgage with a small initial rate may be the best way to reduce your monthly payments.
Are you planning to cash out some of your home equity with your refinance? Perhaps you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you will need to apply for a loan for more than the balance remaining on your current mortgage.So you will want You might not have an increase in your mortgage payemnt, however, if you have had your current mortgage for a while, and/or your interest rate is high.
Do you want to pull out a portion of your home equity to consolidate additional debt? Good plan! If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars each month.
Switching to a Shorter Term Loan
Are you hoping to fatten your equity faster, and get your mortgage paid off more quickly? If this is your wish, your refinance loan can switch you to a loan program with a short, such as a 15 year loan. You will be paying less interest and increasing your home equity more quickly, although your mortgage payments will generally be bigger than they were. But, you may be able to switch without a bigger monthly payment if your long term mortgage was closed a while back, and the balance remaining is small. You may even pay less! To help you understand your options and the many benefits in refinancing, please call us at (337) 453-0012. We are here for you.
Want to know more about refinancing? Call us at (337) 453-0012.