Selecting a Refinancing Program
Although it seems like it sometimes, there aren't as many refinance choices as there are applicants! We can guide you to find the refinance program that can fit your needs the best. Contact us at (334) 285-8850 to get things started. What are your reasons for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are getting reduced mortgage payments and an improved rate your main reasons for refinancing? If so, the best option could be a low fixed-rate loan. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set the low interest rate for the term of your loan. This kind of loan can be particularly a good choice if you aren't planning a move within the next 5 years or so. However, an ARM with a initial low payment could be a better way to lower your mortgage payments if you expect to move within the near future.
Is your refinance goal primarily to pull out some equity for an infusion of cash? It could be you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. Then you'll need to get a loan for more than the balance remaining of your current mortgage.So you will You will be looking for a loan for more than the balance remaining with your present home loan in that case. You might not have an increase in your monthly payemnt, however, if you have had your existing loan for a long time, and/or your interest rate is high.
Consolidating Your Debt
Perhaps you want to pull out some of the equity in your home (cash out) to use toward other debt. If you have the equity in your home for it, paying off other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars each month.
Paying it off Faster
Are you wanting to fatten up your equity faster, and pay off your mortgage more quickly? Then, you want to look into refinancing to a short term mortgage loan - like a fifteen-year loan. The monthly payments will probably be more than with your long-term mortgage loan, but in exchange, that you will pay considerably less interest and can build up equity more quickly. Conversely, if your current longer term loan has a small balance remaining, and was closed a number of years ago, you may be able to make the move without paying more each month. To help you determine your options and the many benefits of refinancing, please call us at (334) 285-8850. We will help you reach your goals!
Curious about refinancing? Give us a call: (334) 285-8850.