Refinancing: Which Loan Program is for You?

There aren't as many refinance loan options as there are applicants, but at times it feels like it! Call us at (504) 212-0704 and we will match you with the refinance program that fits you best. There are some general questions to ask yourself as you review the options.

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 the best choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage, even when interest rates rise. A fixed-rate mortgage can be especially a good option if you aren't planning a move within the next 5 years or so. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments.

Refinancing to Cash Out

Are you planning to cash out some of your equity with your refinance? Your home needs improvements; your son has been accepted to college and needs tuition; or you are taking your family on a cruise. Then you'll want to qualify for a loan higher than the balance remaining of your present mortgage. With this goal, you'll You'll want to get a loan for more than the current balance on your current home loan in that case. If you've had your existing mortgage for quite a while and/or have a loan with high interest, you might\could be able to do this without making your mortgage payment higher.

Debt Consolidation

Do you hold other debt, perhaps with higher interest, that you'd like to consolidate? If you have enough home equity, paying toward other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) could help save you a lot of cash each month.

Building up Equity Faster

Are you dreaming of paying off your loan faster, while beefing up your home equity faster? If this is your plan, your refinance mortgage can move you to a loan program with a short, for example: a 15 year loan. You will be paying less interest and increasing your equity more quickly, even though your monthly payments will likely be more than you were paying. However, if you've held your existing 30 year mortgage loan for a long time and the loan balance is rather low, you might be do this without raising your monthly payment — it's even possible to save! To help you determine your options and the many benefits of refinancing, please call us at (504) 212-0704. We will help you reach your goals!