Refinancing: Which Loan Program is for You?
When you are overwhelmed with all the choices, it may seem as if there are even more loan programs than borrowers! Call us at 512-302-9410 and we'll work with you to qualify you for the best refinance loan program to fit your financial situation. surveying your options, you need to list your goals for your refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even if rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set the low interest rate for the life of your loan. This can be particularly a wise idea if you don't think you will sell your home within the next 5 years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower payments.
Refinancing to Cash Out
Is your refinance goal mainly to "cash out" some home equity? Your home needs renovating; your daughter has been accepted to University and needs tuition; or you are planning a special vacation. With this in mind, you'll want to get a loan higher than the remaining balance on your existing mortgage.With this goal, you want However, if your interest rate is currently high and you have held it for a long time, you could be able to reach your goals without making your monthly payments rise.
Consolidating Your Debt
Perhaps you'd like to cash out a portion of the equity in your home (cash out) to use toward other debt. If you have the equity in your home to make it work, taking care of other high interest debt (such as home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Building up Equity Faster
Do you need to build up home equity more quickly, and have your mortgage paid off sooner? Consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. Your mortgage payments will probably be higher than they were with a longer term mortgage, but the pay-off is: you will pay considerably less interest and can build up equity more quickly. On the other hand, if your current longer term mortgage has a low remaining balance, and was closed a while ago, you may even be able to make the move without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please contact us at 512-302-9410. We would love to help you reach your goals!
Curious about refinancing your home? Give us a call at 512-302-9410.
Thinking of Refinancing?
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