Choosing a Refinancing Program
There are not as many loan programs as there are borrowers, but at times it feels like it! Call us at 469-640-0400 and we'll work with you to qualify you for the right refinance loan program for your situation. In order to review your choices, you need to list your goals for your refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan could be a wise option for you. Perhaps you currently hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest varies. Unlike 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 aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise loan option. However, an ARM with a low intitial payment could be a better way to reduce your monthly payments if you plan on moving in the next few years.
Refinancing to Cash Out
Are you planning to cash out some of your home equity in your refinance? Your house needs improvements; your daughter has been accepted to college and needs tuition money; or you have a special family vacation planned. With this in mind, you'll need to get a loan above the remaining balance of your current mortgage.Then you will want to find a loan program for a bigger number than the balance remaining on your present mortgage loan. However, if your mortgage rate is currently high and you have held it for quite a few years, you could be able to achieve your goals without a rise in your mortgage payment.
Do you have other debt, perhaps with high interest, that you'd like to consolidate? If you have some higher interest debts (like credit cards or car loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the right amount of home equity.
Paying it off Faster
Do you hope to build up equity quicker, and pay off your mortgage faster? Consider refinancing with a shorterterm loan, like a 15-year mortgage. You will be paying less interest and growing your home equity faster, although your mortgage payments will generally be more than you were paying. However, if you have had your existing thirty year loan for a long time and the remaining balance is rather low, you may be do this without increasing your monthly mortgage payment — you might even be able to save! To help you understand your options and the many benefits in refinancing, please call us at 469-640-0400. We are here to help you reach your goals!
Want to know more about refinancing your home? Give us a call at 469-640-0400.