Which Refinancing Option is Best for You?
Making your Payments Lower
Are achieving reduced payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. Maybe you are presently in a mortgage with a high, fixed interest rate, or a loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you lock in that low rate for the term of your loan. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can particularly be a good choice. On the other hand, if you do see yourself selling your home before too long, an adjustable rate mortgage with a low initial rate may be the ideal way to lower your monthly payments.
Getting Some Cash
Are you hoping to cash out some of your equity in your refinance? Your house needs improvements; your son has been accepted to college and needs tuition money; or you are taking your family on a cruise. Then you need to get a loan for more than the balance remaining on your present mortgage.In that case, you will want to need to get a loan program for a bigger amount than the balance remaining on your current mortgage. You may not have an increase in your monthly payemnt, however, if you have had your existing mortgage for a while, and/or your loan interest rate is high.
Paying it off Faster
Do you need to build up home equity quicker, and have your mortgage paid off faster? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. The mortgage payments will probably be higher than with the longer term mortgage, but the pay-off is: you will pay quite a bit less interest and will build up equity more quickly. But, you may be able to make the change without a bigger monthly payment if your long term mortgage loan was closed a while back, and the balance remaining is small. You may even make it lower! To help you figure out your options and the numerous benefits of refinancing, please call us at (334) 285-8850. We will help you reach your goals!
Consolidating your Dept
Do you hold other debt, maybe with a high interest rate, that you need to consolidate? If you have a fair amount of home equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) could help save you a lot of money every month.
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