Refinancing: Which Option is for You?

When you are overwhelmed with so many options, it may seem like there are even more refinance programs than borrowers! We can guide you to choose the loan program that will fit your situation the best. Contact us at 256-543-0670 to get started. In the interest of looking at your choices, you can determine your goals for your refinance.

Making Your Payments Lower

Are getting better payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. Maybe you now hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — in which the interest rate can vary. Even if rates get higher later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in that low rate for the term of your mortgage. This kind of loan is especially a wise option if you aren't expecting a move within the next five years or so. However, if you can see yourself selling your home in the near future, an ARM mortgage with a small initial rate might be the best way to lower your monthly payment.

Cashing Out

Are you refinancing primarily to pull out some equity for an infusion of cash? Your home needs improvements; your daughter has been accepted to University and needs tuition money; or you are planning a special vacation. With this in mind, you need to find a loan above the remaining balance of your existing mortgage.Then you need You may not increase your monthly payemnt, however, if you have had your current loan for a number of years, and/or your interest rate is high.

Consolidating Your Debt

Do you have other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have the home equity for it, paying off other high interest debt (for example: credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars each month.Pay off credit cards/consumer debt.

Paying it off Faster

Are you dreaming of paying your loan off faster, while building up your home equity faster? You should consider refinancing with a short-term loan, like a 15-year mortgage loan. Even though your mortgage payment amount will probably be increased, you can save on interest; so your home equity will rise up faster. Conversely, if your current longer term loan has a small balance remaining, and was closed a number of years ago, you may even be able to make the switch without paying more each month. To help you figure out your options and the many benefits in refinancing, please call us at 256-543-0670. We are here for you.

Curious about refinancing? You can test questions below or Give us a call: 256-543-0670 in Gadsden or 256-364-8300 in Fort Payne


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