Many current Orleans LA homeowners are taking advantage of current mortgage rates that are at historic lows. They understand the benefits and advantages of locking in their home mortgage at a lower rate. If you are a current homeowner in the Orleans La area, you should consider a mortgage refinance on your property. This would allow you to lower your payments, build equity in your home faster or free up cash for paying off other bills.
If your home was financed at a higher rate, you could complete a mortgage refinance at the same loan term and lower your monthly payment. This is the top advantage for lowering your Louisiana mortgage. In this economy, household budgets are running tight. Every dollar saved is important. The amount saved every month can be put towards other expenses or even the mortgage.
Some homeowners lock in a lower interest rate and then pay the same amount that they have been paying every month. The extra money goes towards the amount of debt owed and has the effect of lowering the term of the loan. By keeping the same payment every month, a homeowner could reduce the term by 3 to 5 years. This amount depends on how much extra cash is going towards paying down the premium every month.
If you currently have equity built up in your home, lowering the interest rate on your mortgage would also allow you to pay off credit cards that often hold higher interest rates. Debt restructuring is offered by mortgage lenders such as Sun Mortgage Funding. With this type of loan, a homeowner can bundle credit card debt into a home mortgage. The savings can be quite lucrative when you consider most credit cards charge around 10 percent or higher.
On the other hand, you could build up the equity in your home faster by changing the loan term of your home mortgage to 15 years. This would bump your payment up, but you would be paying off a loan with a lower interest rate. If you are financially stable and looking for a place to invest extra cash, this may be an ideal option for you.
Sun Mortgage Funding has years of experience in the lending business and is happy to answer any questions that an individual may have regarding home loan refinancing. Call us today to schedule a free consultation! 1-800-370-2292