Which Refinancing Loan Program is Best for You?

There aren't as many refinance loan options as there are applicants, but it feels like it sometimes! We can guide you to select the loan program that can fit your situation the best. Contact us at 706-860-5514 to get things started. There are some general things to keep in mind as you review the choices.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then your best option might be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage in which the interest rate varies - an adjustable rate mortgage (ARM). 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 term of your mortgage. This kind of loan is especially a good idea if you aren't expecting a move within the next 5 years or so. On the other hand, if you can see yourself moving in the near future, an adjustable rate mortgage with a low initial rate might be the best way to lower your monthly payments.

Refinancing to Cash Out

Are you hoping to cash out some of your home equity with your refinance? Maybe you need to pay for home improvements, take care of your college kid's tuition, or take your family on a dream vacation. With this in mind, you want to find a loan above the remaining balance of your existing mortgage.Then you want You might not have an increase in your monthly payemnt, though, if you have had your existing mortgage for a number of years, and/or your loan interest rate is high.

Consolidating Debt

Do you have other debt, perhaps with a higher interest rate, that you want to consolidate? 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: credit cards, home equity loans, or car loans) means you can possible save several hundred dollars per month.

Building up Equity Faster

Do you hope to build up home equity quicker, and pay off your mortgage sooner? Then, you need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage program. The monthly payments will likely be higher than with the long-term loan, but the pay-off is: you will pay considerably less interest and will build up equity more quickly. But, you could be able to switch without much increase in your monthly payment if your longer term mortgage was closed a while ago, and the balance remaining is small. You could even make it lower! To help you understand your options and the multiple benefits in refinancing, please call us at 706-860-5514. We can help you reach your goals!

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

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