When refinancing your home, there are a lot of different options available from the mortgage companies in Atlanta. As you start to contact mortgage lenders, get ready to ask them about the options they have available, but keep in mind, the right option is generally dictated by your circumstances and by the reasons you want to finance. To help you research your options, here’s a look at some of the most popular mortgage products available from Atlanta mortgage brokers.
Lowering Interest Rate
One of the main reasons homeowners want to refinance their Atlanta mortgage is because they want to reduce the interest rate. If your interest rate is too high, you may want to look into a government-guaranteed loan. When taking out a mortgage, Atlanta homeowners may want to look into FHA loans, VA loans, or USDA loans. These mortgages are backed by the Federal Housing Administration, the Department of Veteran Affairs, and the US Department of Agriculture respectively. If you don’t qualify for one of those programs, a representative from mortgage companies in GA can help you find another mortgage with lower interest rates.
Fixing the Interest Rate
In other cases, you may be refinancing your home to fix the interest rate. Generally when they get mortgages with adjustable interest rates from their mortgage brokers Atlanta residents eventually decide to switch to a fixed interest rate. With an adjustable mortgage, the rate changes periodically. These mortgages can be great in some situations because they tend to offer low introductory rates, but over time, the lack of predictability can become wearing.
Changing the Length of the Term
Perhaps, you aren’t worried about the interest rate, but you want to change the term on your mortgage. If you want more time, you may need to consider refinancing your home mortgage from a 15-year term to a 30-year term. On the other side of the coin, if you want to pay off your mortgage sooner, you may need to contact mortgage lenders in Georgia about refinancing your home mortgage from a 30-year term to a 15-year term. Note that if you refinance to a 15-year term, the interest rate on your mortgage usually goes down. That’s why people formally refinance rather than just paying off a 30-year mortgage in half the time.
Tapping Into Equity
Curious about refinancing your home because you want to tap into the equity? In this situation, you may want to talk with mortgage companies in Georgia about home equity lines of credit (HELOC) or home equity loans. When you’re refinancing your home to get the equity, you increase the amount you owe on the home, but you also get money in your pocket that you can use for renovations, college tuition, traveling, or a variety of other expenses.
Altering the Structure of Your Mortgage
Finally, you may not want a traditional refinance. Rather, you may want to completely change the structure of your mortgage from a traditional mortgage to a reverse mortgage. You need to be over a certain age and have a certain amount of equity in your home to qualify for a reverse mortgage, but you can get more information from mortgage companies in Atlanta, GA.
If you’re refinancing your home, we can help. To learn more about a mortgage broker, Atlanta residents should contact us directly. At BrightPath, we offer a wide range of mortgages to perfectly meet your needs.