Which Refinancing Program is Best for You?
There are an enormous number of refinancing programs available to borrowers. Call us at 512-302-9410 and we can help you qualify for the best refinance program for your financial needs. What are your reasons for your refinance loan? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right loan program for you. Maybe you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — in which the rate of interest varies. Even as interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about five years), a fixed rate mortgage loan can especially be a good choice. However, an ARM with a low intitial payment could be a smarter way to reduce your mortgage payments if you expect to move in the next few years.
Refinancing to Cash Out
Is "cashing out" your primary purpose for your refinance? Maybe you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. Then you need to get a loan for more than the balance remaining of your current mortgage loan.So you want You may not increase your monthly payemnt, though, if you've had your current mortgage loan for a long time, and/or your loan interest rate is high.
Perhaps you want to pull out some home equity (cash out) to put toward other debt. If you own some higher interest debts (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have enough home equity.
Paying it off Faster
Are you hoping to fatten your home equity faster, and pay your mortgage off sooner? Then, you'll want to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. Although your monthly payment amount will probably be increased, you can be paying less interest; so your equity will build up faster. On the other hand, if your existing longer term mortgage has a low balance remaining, and was closed a number of years ago, you could be able to make the switch without paying more each month. To help you figure out your options and the many benefits of refinancing, please contact us at 512-302-9410. We are here for you.
Curious about refinancing? Give us a call: 512-302-9410.
Thinking of Refinancing?
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