Choosing a Refinancing Option

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There are not as many loan programs as there are borrowers, but it seems like it at times! Call us at (256) 734-6012 and we can help you qualify for the right refinance program for your situation. What are your reasons for refinancing? Keeping in mind the information below will help you narrow your choices.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then the best choice may be a low fixed-rate loan. Maybe you are now in a loan with a high, fixed interest rate, or a loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great option. 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 reduced mortgage payments.

Refinancing to Cash Out

Are you refinancing mainly to pull out some equity for an infusion of cash? It could be you need to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. With this in mind, you'll need to get a loan higher than the remaining balance of your current mortgage loan.In that case, you will 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 current mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.

Debt Consolidation

Do you want to cash out some of your home equity to consolidate other debt? Yes you can! If you have a fair amount of equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a lot of money each month.

Paying it off Sooner

Are you dreaming of paying off your loan more quickly, while building up your equity quicker? You should consider refinancing with a short-term loan, often a 15-year mortgage loan. Although your mortgage payments will usually be increased, you can be paying less interest; so your equity amount will rise up faster. However, if you have held your current thirty-year loan for a long time and the remaining balance is somewhat low, you may be able to do this without raising your monthly payment — you might even be able to save! To help you figure out your options and the many benefits in refinancing, please call us at (256) 734-6012. We are here for you.

Want to know more about refinancing your home? Call us: (256) 734-6012.

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