Which Refinancing Program is Best for You?

Even though it seems like it sometimes, there are not as many refinance options as there are applicants! Contact us at 205-941-1484 and we can help you qualify for the right refinance loan program for your financial situation. What do you hope to achieve with your refinance loan? Considering in mind the following will help you narrow your choices.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, the best option might be a low fixed-rate loan. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of the mortgage, even when interest rates rise. If you plan to live in your home for about five more years, a fixed rate mortgage may be a particulary good option for you. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments.

Getting Out some Cash

Are you wanting to cash out some of your equity in your refinance? It could be you're dreaming of a cruise; you have to pay college tuition for your child; or you plan to renovate your home. So you will need to qualify for a loan above the remaining balance on your present mortgage loan.With this goal, you need You might not increase your monthly payemnt, though, if you've had your current mortgage loan for a long time, and/or your interest rate is high.

Debt Consolidation

Maybe you'd like to cash out some equity in your home (cash out) to use toward other debt. If you hold some higher interest debts (such as credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have the home equity built up to make it work.

Paying it off Faster

Are you wanting to fatten up your equity faster, and get your mortgage paid off sooner? If this is your plan, the refinance can change you to a loan program with a short, for example: a 15 year loan. Your monthly payments will likely be higher than with your longer term mortgage, but in exchange, you will pay substantially less interest and can build up equity quicker. Conversely, if your existing longer term mortgage loan has a low remaining balance, and was closed a while ago, you may even be able to make the move without paying more each month. To help you figure out your options and the numerous benefits in refinancing, please contact us at 205-941-1484. We are here for you.

Curious about refinancing your home? Give us a call at 205-941-1484.

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