Choosing a Refinancing Loan
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There are not as many refinance loan programs as there are borrowers, but it seems like it sometimes! Call us at (205) 588-0672 and we can match you with the loan program that fits you best. There are some general things to keep in mind as you look at your options.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even when rates get higher later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low interest rate for the life of your loan. A fixed-rate mortgage can be especially a good idea if you don't think you'll be selling your home within the next 5 years or so. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced monthly payments.
Refinancing to Cash Out
Are you refinancing mainly to "cash out" some home equity? It could be you need to pay for home improvements, take care of your college kid's tuition, or go on a special family vacation. So you will want to apply for a loan for more than the remaining balance on your existing mortgage.Then you will need You might not have an increase in your monthly payment, though, if you've had your current mortgage loan for a while, and/or your interest rate is high.
Do you want to pull out some home equity to consolidate additional debt? Great plan! If you have the home equity for it, paying off other high interest debt (such as credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars per month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while building up your equity quicker? In that case, you'll need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage program. Your monthly payments will probably be more than with the long-term mortgage loan, but in exchange, that you will pay quite a bit less interest and can build up equity quicker. Conversely, if your current long-term mortgage loan has a small balance remaining, and was closed a number of years ago, you may even be able to make the switch without paying more each month. To help you determine your options and the many benefits of refinancing, please call us at (205) 588-0672. We are here for you.
Want to know more about refinancing? Call us at (205) 588-0672.