Refinancing: Which Loan Program is for You?

There are an enormous number of refinancing options available to borrowers. Call us at (770) 454-9566 and we will match you with the loan program that is ideal for you. What are your reasons for your refinance loan? Considering in mind the information below will help you begin your decision process.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Perhaps you now hold a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — in which the rate of interest can vary. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the loan, even when interest rates rise. This kind of loan is particularly a good idea if you don't plan to move within the next 5 years or so. On the other hand, if you do see yourself selling your home within the next few years, an adjustable rate mortgage with a small initial rate might be the ideal way to lower your monthly payment.

Cashing Out

Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Maybe you want to make home improvements, pay your child's college tuition bill, or take a cruise. In this case, you'll need to get a loan higher than the balance remaining on your existing mortgage.With this goal, you want to qualify for a loan program for a bigger amount than the remaining balance on your existing mortgage loan. If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment bigger.

Consolidating Your Debt

Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you hold any higher interest debts (such as credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have enough equity.

Building up Equity Faster

Are you dreaming of paying off your loan sooner, while building up your home equity faster? In that case, you want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. Although your mortgage payment amount will likely be more, you can be paying less interest; so your equity amount will build up faster. On the other hand, if your existing longer term mortgage loan has a small balance remaining, and was closed a while ago, you could be able to make the change without paying more each month. To help you understand your options and the multiple benefits in refinancing, please contact us at (770) 454-9566. We are here for you.