Which Refinancing Option is Best for You?

The huge number of refinance options available to borrowers is truly breathtaking. Call us at 205-941-1484 and we will help you qualify for the right refinance loan program to fit your needs. What are your reasons for your refinance loan? Keeping in mind the following will help you begin your decision process.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan may be a wise option for you. Maybe you currently have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the interest rate varies. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage, even as interest rates rise. If you plan to stay in your home for about five more years, a fixed-rate loan may be an especially good choice for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower payments.

Refinancing to Cash Out

Is your refinance goal primarily to pull out some equity for an infusion of cash? Maybe you want to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. So you need to get a loan above the balance remaining on your existing mortgage.In that case, you'll You will be looking for a loan for a bigger amount than the remaining balance of your existing home loan in this case. If you've had your current mortgage for a long time and/or have a mortgage with high interest, you may be able to do this without making your monthly payment higher.

Debt Consolidation

Do you want to pull out some home equity to consolidate other debt? Good plan! If you own some higher interest debts (like credit cards or car loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have the equity built up to make it work.

Switching to a Shorter Term Loan

Do you want to build up equity quicker, and pay off your mortgage more quickly? If this is your goal, the refinance loan can switch you to a mortgage program with a shorter term, for example: a 15 year loan. Your payments will likely be higher than they were with your long-term loan, but in exchange, that you will pay substantially less interest and can build up equity quicker. But, you may be able to make the change without a higher monthly mortgage payment if your long term mortgage was closed a while back, and the remaining balance is small. You may even pay less! To help you understand your options and the many benefits of refinancing, please contact us at 205-941-1484. We can help you reach your goals!

Curious about refinancing your home? Call us: 205-941-1484.

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