Refinancing: Which Program is for Your Family?

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Although it seems like it at times, there aren't as many refinance choices as there are borrowers! Contact us at 678-546-3040 and we will match you with the loan program that is ideal for you. What do you hope to achieve with refinancing? Keeping in mind the following will help you begin your decision process.

Reducing Your Monthly Payments

Are getting better monthly payments and an improved rate your main reasons for refinancing? Then a low, fixed rate loan may be the best loan program for you. Maybe you are currently in a mortgage loan with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Different that 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 aren't planning a move in the near future (about five years), a fixed-rate mortgage can particularly be a good loan option. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced monthly payments. Refinancing can also cause your total finance charges to be higher over the life of the loan.

Refinancing to Cash Outon Your Equity

Are you wanting to cash out some of your home equity in your refinance? Your house needs new carpet; your daughter has been accepted to college and needs tuition money; or you are planning a special vacation. In this case, you want to find a loan for more than the balance remaining on your current mortgage.With this goal, you will need You might not increase your mortgage payment, however, if you've had your existing loan for a number of years, and/or your interest rate is high.

Consolidating Your Debt

Maybe you want to pull out a portion of the home equity (cash out) to put toward other debt. If you have some higher interest debts (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have enough home equity.

Getting a Shorter Term Loan

Are you wanting to fatten your home equity faster, and get your mortgage paid off more quickly? If this is your plan, the refinance mortgage can switch you to a mortgage loan program with a short, like a 15 year loan. You will be paying less interest and growing your home equity more quickly, even though your payments will likely be higher than they were. However, if you have held your current 30-year mortgage loan for a number of years and the loan balance is somewhat low, you might be able to do this without raising your monthly mortgage payment — you may even be able to save! To help you determine your options and the many benefits in refinancing, please call us at 678-546-3040. We are here to help you reach your goals!

Want to know more about refinancing? Give us a call: 678-546-3040.