Refinancing: Which Loan Program is for You?
There are not as many loan programs as there are borrowers, but at times it seems like it! Contact us at 469-640-0400 and we will work with you to qualify you for the right refinance loan for your financial needs. There are some general things to bear in mind as you review your options.
Reducing Your Monthly Payments
Are getting lower mortgage payments and a lower rate your main refinance goals? If so, a good choice may be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the mortgage loan, even as interest rates rise. If you expect to stay in your home for at least five more years, a fixed rate loan may be a particulary good choice for you. On the other hand, if you do see yourself selling your home in the near future, an ARM with a low initial rate could be the best way to reduce your monthly payments.
Are you refinancing mainly to "cash out" some home equity? Perhaps you need to update your kitchen, take care of your college kid's tuition, or take your family on a dream vacation. Then you will need to apply for a loan higher than the balance remaining of your existing mortgage.Then you will You'll be looking for a loan for a bigger amount than the current balance with your current mortgage loan in that case. If you've had your current mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.
Do you want to pull out some of your equity to consolidate additional debt? Yes you can! If you have a fair amount of equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a lot of cash each month.
Building up Equity Faster
Do you need to build up equity quicker, and have your mortgage paid off sooner? If this is your hope, the refinance mortgage can move you to a mortgage program with a shorter term, for example: a 15 year loan. You will be paying less interest and increasing your equity more quickly, although your monthly payments will usually be more than you have been paying. But, you could be able to switch without much increase in your monthly mortgage payment if your long term mortgage loan was closed a while back, and the balance remaining is somewhat low. You could even pay less! To help you determine your options and the multiple benefits of refinancing, please call us at 469-640-0400. We will help you reach your goals!
Curious about refinancing? Give us a call: 469-640-0400.