Which Refinancing Option is Best for You?
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There are an enormous number of refinancing options available to borrowers. Contact us at (504) 832-3131 and we will match you with the loan program that best fits you. In the interest of looking at your options, you need to think about your goals for the refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even when rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low interest rate for the term of your loan. This kind of loan can be especially a wise option if you don't plan to move within the next five years or so. However, an ARM with a low initial payment may be a better way to lower your mortgage payments if you see yourself moving within the near future.
Getting Out some Cash
Is "cashing out" your primary purpose for your refinance? Your house needs updating; your daughter has gone to college and needs tuition money; or you are planning a special vacation. Then you need to get a loan for more than the balance remaining on your current mortgage.So you'll You'll be looking for a loan for more than the current balance of your present mortgage loan in this case. However, if your mortgage rate is high now and you've held it for a long time, you may be able to reach your goals without making your mortgage payments higher.
Perhaps you'd like to cash out a portion of the equity (cash out) to put toward other debt. If you have enough home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a chunk of cash every month.
Paying it off Sooner
Are you dreaming of paying off your loan sooner, while building up your home equity more quickly? Consider refinancing with a shorterterm loan, like a 15-year mortgage loan. Your monthly payments will likely be higher than they were with a long-term loan, but in exchange, you will pay substantially less interest and will build up equity quicker. Conversely, if your existing longer term mortgage has a low remaining balance, and was closed a number of years ago, you may even be able to make the change without paying more each month. To help you understand your options and the multiple benefits of refinancing, please contact us at (504) 832-3131. We are here for you.
Want to know more about refinancing your home? Call us: (504) 832-3131.