Refinancing: Which Loan Program is for You?
When you are overwhelmed with so many options, it may seem like there are even more loan programs than applicants! Contact us at 706-860-5514 and we will match you with the refinance loan program that fits you best. What are your goals for your refinance loan? Keeping in mind the following will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even if rates get higher later, unlike with your ARM, when you close a fixed rate mortgage, you set the low interest rate for the term of your loan. This is particularly a good idea if you don't plan to sell your home within the next five years or so. However, if you can see yourself selling your home before too long, an ARM with a low initial rate could be the best way to bring down your monthly payment.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? Your home needs new carpet; your daughter has gone to University and needs tuition money; or you are taking your family on a cruise. Then you'll want to get a loan above the balance remaining of your current mortgage.With this goal, you'll You'll be looking for a loan for more than the current balance of your current home loan in that case. You might not have an increase in your monthly payemnt, however, if you have had your existing mortgage for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you hold other debt, maybe with higher interest, that you want to consolidate? If you have enough equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might help save you a lot of money every month.
Building up Equity More Quickly
Are you wanting to fatten up your home equity faster, and pay off your mortgage loan more quickly? If this is your goal, your refinance can move you to a mortgage loan program with a short, for example: a 15 year loan. Even though your monthly payment amount will usually be more, you will save on interest; so your equity will build up faster. However, if you have had your current 30 year mortgage loan for a long time and the loan balance is rather low, you may be do this without increasing your monthly mortgage payment — it's even possible to save! To help you understand your options and the multiple benefits in refinancing, please contact us at 706-860-5514. We are here for you.
Curious about refinancing your home? Give us a call at 706-860-5514.