Which Refinancing Option is Best for You?
Although it may seem like it at times, there aren't as many refinance choices as there are borrowers! Call us at 706-860-5514 and we can match you with the refinance loan program that best fits you. What are your goals for refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Perhaps you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the mortgage, even as interest rates rise. If you plan to stay in your home for at least five more years, a loan with a fixed rate may be a particulary good fit for you. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? It could be you need to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. So you will want to get a loan higher than the balance remaining of your current mortgage loan.With this goal, you You will be looking for a loan for a bigger amount than the current balance on your current mortgage in this case. You may not increase your mortgage payemnt, though, if you have had your current loan for a while, and/or your interest rate is high.
Perhaps you hope to pull out some of the equity (cash out) to use toward other debt. If you hold some debt with higher interest (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough equity.
Paying it off Faster
Do you need to build up equity more quickly, and pay off your mortgage faster? If this is your plan, the refinance loan can change you to a mortgage loan program with a shorter term, for example: a 15 year loan. You will be paying less interest and increasing your home equity more quickly, although your mortgage payments will likely be bigger than you were paying. On the other hand, if your current long-term loan has a small balance remaining, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you determine your options and the many benefits in refinancing, please contact us at 706-860-5514. We are here to help you reach your goals!
Curious about refinancing? Call us: 706-860-5514.