Which Refinancing Program is Best for You?
When you are overwhelmed with so many choices, it may seem like there are even more refinance loan programs than borrowers! Contact us at 512-302-9410 and we will match you with the loan program that fits you best. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you begin your decision process.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even as interest rates rise. If you are planning to live in your home for about five more years, a fixed-rate loan may be an especially good choice for you. However, an ARM with a initial low payment could be a wiser way to reduce your payments if you expect to move in the near future.
Getting Out some Cash
Are you wanting to cash out some of your equity in your refinance? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. In this case, you want to get a loan higher than the remaining balance of your present mortgage.Then you'll You'll want to find a loan for a bigger amount than the current balance with your present mortgage in that case. If you've had your current mortgage loan for a long time and/or have a loan whose interest rate is high, you may be able to do this without making your monthly payment higher.
Do you have other debt, maybe with high interest, that you need to consolidate? If you have a fair amount of equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) could help save you a lot of cash every month.
Getting a Shorter Term Loan
Do you want to build up home equity more quickly, and pay off your mortgage faster? You should consider refinancing with a shorterterm loan, like a 15-year mortgage loan. Even though your monthly payment amount will usually be increased, you will save on interest; so your equity will build up faster. But, you may be able to make the change without a higher monthly mortgage payment if your long term mortgage was closed a while back, and the balance remaining is low enough. You may even make it lower! To help you determine your options and the multiple benefits in refinancing, please call us at 512-302-9410. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call at 512-302-9410.
Thinking of Refinancing?
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