Refinancing: Which Loan Program is for You?
The number of refinance options available is truly breathtaking. Call us at 512-302-9410 and we'll work with you to qualify you for the right loan program to fit your financial needs. What are your reasons for refinancing? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are getting better mortgage payments and a lower rate your main refinance goals? Then a low, fixed rate loan may be the ideal loan program for you. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage in which the interest rate varies : an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low interest rate for the life of your loan. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a great option. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced mortgage payments.
Are you refinancing primarily to "cash out" some home equity? Perhaps you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you will want to apply for a loan higher than the remaining balance on your existing mortgage loan.With this goal, you'll want to find a loan program for a bigger amount than the balance remaining on your current mortgage. You may not have an increase in your mortgage payemnt, though, if you've had your existing mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with high interest, that you want to consolidate? If you have the equity in your home to make it work, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you may be able to save several hundred dollars monthly.
Building up Equity More Quickly
Are you hoping to fatten up your equity faster, and pay your mortgage off sooner? You should consider refinancing with a shorterterm loan, often a 15-year mortgage. Even though your mortgage payment amount will likely be more, you can save on interest; so your home equity will build up faster. However, if you have held your current 30-year mortgage loan for a number of years and the remaining balance is relatively low, you could be do this without increasing your monthly payment — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please call us at 512-302-9410. We are here for you.
Want to know more about refinancing? Give us a call: 512-302-9410.
Thinking of Refinancing?
Fill out the short form below and we'll contact you for a no-obligation consultation.