Choosing a Refinancing Loan

There aren't as many loan program choices as there are borrowers, but at times it seems like it! Contact us at 706-860-5514 and we will match you with the refinance loan program that best fits you. There are several things to keep in mind as you look at your choices.

Reducing Your Monthly Payments

Are getting reduced mortgage payments and an improved rate your main refinance goals? Then the best choice may be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates come up later, unlike with your ARM, when you get a fixed rate mortgage, you lock in the low rate for the life of your mortgage. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a good option. On the other hand, if you do see yourself selling your home within the next few years, an ARM with a low initial rate may be the best way to reduce your monthly payments.

Refinancing to Cash Out

Are you refinancing mainly to pull out some equity for an infusion of cash? Perhaps you're dreaming of a cruise; you have to pay college tuition for your child; or you are updating your kitchen. In this case, you need to apply for a loan higher than the balance remaining of your existing mortgage loan.So you need 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.

Consolidating Debt

Perhaps you want to cash out some equity (cash out) to use toward other debt. If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.

Building up Equity More Quickly

Do you need to build up home equity quicker, and have your mortgage paid off sooner? In that case, you want to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. The payments will probably be more than with the long-term loan, but in exchange, you will pay substantially less interest and will build up equity quicker. But, you might be able to make the change without a higher monthly payment if your long term mortgage was closed a while ago, and the balance remaining is low. You could even make it lower! To help you determine your options and the many benefits in refinancing, please contact us at 706-860-5514. We are here for you.

Want to know more about refinancing? Call us at 706-860-5514.

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