Selecting a Refinancing Loan
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The number of refinance options available can be overwhelming. Call us at (504) 888-3858 and we can work with you to qualify you for the best loan program to fit your financial situation. There are some general things to keep in mind while you review the choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, your best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even as interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a great loan option. However, if you do see yourself selling your home before too long, an ARM with a small initial rate could be the ideal way to reduce your monthly payment.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? Your home needs improvements; your son has been accepted to University and needs tuition; or you are planning a special vacation. In this case, you will want to get a loan above the remaining balance on your current mortgage.Then you want to find a loan for a higher amount than the remaining balance on your present mortgage. 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 an increase in your mortgage payment.
Do you have other debt, perhaps with high interest, that you need to consolidate? If you have enough equity, taking care of other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash every month.
Paying it off Faster
Are you hoping to fatten up your home equity faster, and get your mortgage paid off more quickly? Consider refinancing to a short-term loan, often a 15-year mortgage. The payments will likely be higher than they were with the longer term mortgage, but in exchange, you will pay considerably less interest and will build up equity quicker. But, you may be able to make the change without a bigger monthly payment if your longer term mortgage was closed a while back, and the balance remaining is low enough. You could even pay less! To help you figure out your options and the numerous benefits in refinancing, please call us at (504) 888-3858. We will help you reach your goals!
Curious about refinancing your home? Call us: (504) 888-3858.