Refinancing: Which Option is for You?

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There are not as many loan program choices as there are applicants, but it feels like it sometimes! We can guide you to select the loan program that can fit your financial situation the best. Contact us at 865-984-5350 to get started. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you narrow your choices.

Lowering Your Payments

Are getting lower monthly payments and a lower rate your main refinance goals? In that case, getting a low, fixed-rate loan might be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even as interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. This is particularly a wise option if you don't think you'll be moving within the next five years or so. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower monthly payments.

Getting Out some Cash

Is "cashing out" your primary purpose for your refinance? Maybe you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you will need to apply for a loan above the balance remaining of your current mortgage loan.Then you need You might not have an increase in your mortgage payment, however, if you have had your existing loan for a number of years, and/or your loan interest rate is high.

Consolidating Your Debt

Do you hold other debt, maybe with higher interest, that you want to consolidate? If you hold any higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have the home equity built up to make it work.

Switching to a Shorter Term Loan

Are you planning to fatten your equity faster, and get your mortgage paid off sooner? If this is your wish, your refinance can switch you to a loan program with a shorter term, such as a 15 year loan. Even though your monthly payments will likely be more, you will be paying less interest; so your home equity will rise up faster. But, you may be able to make the change without a bigger monthly payment if your long term mortgage loan was closed a while back, and the balance remaining is low enough. You may even make it lower! To help you understand your options and the many benefits of refinancing, please contact us at 865-984-5350. We are here for you.

Curious about refinancing your home? Call us at 865-984-5350.