Selecting a Refinancing Option
When you are overwhelmed with all the choices, it may seem like there are even more refinance loan programs than borrowers! We can guide you to locate the loan program that can fit your situation the best. Contact us at 706-860-5514 to get things started. What do you hope to achieve with refinancing? Considering in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the best option for you. Maybe you now hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Even if rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low interest rate for the life of your loan. If you are not planning on moving in the near future (about five years), a fixed rate mortgage loan can particularly be a great choice. However, an ARM with a initial low payment could be a smarter way to lower your payments if you expect to move within the near future.
Is your refinance goal mainly to pull out some of your home equity for an infusion of cash? It could be you want to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. In this case, you will want to get a loan above the remaining balance on your present mortgage.With this goal, you will need You might not increase your monthly payemnt, however, if you have had your existing mortgage loan for a number of years, and/or your loan interest rate is high.
Do you want to pull out a portion of your home equity to consolidate other debt? Excellent idea! If you have enough equity, paying off other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) may help save you a chunk of cash each month.
Getting a Shorter Term Loan
Do you need to build up equity quicker, and have your mortgage paid off faster? Consider refinancing to a shorterterm loan, like a 15-year mortgage. Even though your mortgage payments will likely be increased, you will be paying less interest; so your home equity will rise up faster. But, you might be able to make the change without a higher monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the remaining balance is low. You could even pay less! To help you understand your options and the multiple benefits of refinancing, please contact us at 706-860-5514. We are here for you.
Want to know more about refinancing? Call us: 706-860-5514.