Refinancing: Which Program is for You?
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There are a huge number of refinancing programs available to borrowers. Contact us at 901-674-8593 and we will match you with the refinance loan program that is best for you. There are several questions to ask yourself as you consider the choices.
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. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are expecting to stay in your home for about five more years, a fixed rate loan may be a particularly good option for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.
Getting Out some Cash
Are you hoping to cash out some of your home equity in your refinance? Maybe you need to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. In this case, you'll want to get a loan above the balance remaining on your existing mortgage.In this case, you will You will be looking for a loan for a bigger amount than the current balance of your present mortgage in that case. If you've had your current mortgage loan for quite a while and/or have a mortgage with high interest, you might\could be able to do this without making your mortgage payment bigger.
Consolidating Your Debt
Do you want to cash out a portion of your home equity to consolidate other debt? Good idea! If you have any higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have enough home equity.
Building up Equity More Quickly
Are you hoping to fatten your home equity faster, and pay off your mortgage loan sooner? You should consider refinancing to a shorterterm loan, like a 15-year mortgage loan. You will be paying less interest and increasing your home equity faster, although your monthly payments will usually be higher than you have been paying. But, you might be able to switch without a bigger monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the balance remaining is low enough. You may even make it lower! To help you determine your options and the multiple benefits in refinancing, please call us at 901-674-8593. We can help you reach your goals!
Curious about refinancing? Call us: 901-674-8593.