Refinancing: Which Program is for You?
There aren't as many refinance loan programs as there are applicants, but it seems like it sometimes! Call us at 706-860-5514 and we'll help you qualify for the right refinance loan program for your financial needs. There are several things to bear in mind as you look at your options.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, your best choice could be a low fixed-rate loan. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. This is particularly a good idea if you don't expect to sell your home within the next 5 years or so. However, if you do see yourself moving before too long, an ARM with a low initial rate may be the ideal way to lower your monthly payments.
Is "cashing out" your main reason for refinancing? Your home needs updating; your son has been accepted to University and needs tuition money; or you are taking your family on a cruise. With this in mind, you'll need to look for a loan higher than the balance remaining of your existing mortgage loan.Then you'll want to need to qualify for a loan for a higher amount than the balance remaining on your present mortgage. If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Perhaps you want to pull out a portion of the equity in your home (cash out) to use toward other debt. If you have the equity in your home to make it work, paying off other high interest debt (such as credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars monthly.
Switching to a Shorter Term Loan
Do you want to build up equity more quickly, and have your mortgage paid off sooner? You should consider refinancing to a short-term loan, like a 15-year mortgage. You will be paying less interest and increasing your home equity faster, even though your monthly payments will generally be higher than you have been paying. But, you may be able to switch without much increase in your monthly payment if your longer term loan was closed a while back, and the remaining balance is low enough. You may even pay less! To help you figure out your options and the many benefits of refinancing, please contact us at 706-860-5514. We are here for you.
Want to know more about refinancing? Give us a call at 706-860-5514.