Refinancing: Which Program is for You?
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Even though it seems like it at times, there aren't as many refinance choices as there are applicants! Contact us at (770) 220-2800 and we will help you qualify for the best refinance program for your financial needs. What do you hope to achieve with refinancing? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Even if interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage can be particularly a wise choice if you aren't expecting a move within the next five years or so. However, an ARM with a initial low payment may be a better way to reduce your payments if you see yourself moving in the next few years.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? It could be you want to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. With this in mind, you need to find a loan higher than the remaining balance on your existing mortgage.So you want to need to find a loan for a bigger number than the remaining balance on your present mortgage loan. However, if your interest rate is currently high and you've had it for a long time, you could be able to achieve your goals without making your monthly payments rise.
Perhaps you'd like to cash out a portion of the equity in your home (cash out) to put toward other debt. If you have a fair amount of equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a lot of money every month.
Paying it off Sooner
Are you dreaming of paying your loan off sooner, while beefing up your equity quicker? If this is your plan, your refinance loan can move you to a loan program with a short, for example: a 15 year loan. You will be paying less interest and growing your equity more quickly, although your mortgage payments will generally be bigger than they were. However, if you've had your current thirty-year mortgage for a number of years and the loan balance is relatively low, you might be do this without increasing your mortgage payment — you might even be able to save! To help you understand your options and the multiple benefits in refinancing, please call us at (770) 220-2800. We are here for you.
Want to know more about refinancing? Call us: (770) 220-2800.