Refinancing: Which Option is for You?
When you are overwhelmed with so many choices, it may seem as if there are even more loan programs than borrowers! Call us at 469-640-0400 and we will match you with the refinance program that is ideal for your needs. What are your reasons for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan might be a wise choice for you. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage loan, even when interest rates rise. This can be especially a good option if you don't think you will sell your home within the next five years or so. On the other hand, if you do see yourself selling your home within several years, an ARM mortgage with a low initial rate might be the ideal way to reduce your monthly payments.
Are you hoping to cash out some of your home equity in your refinance? Your house needs improvements; your son has been accepted to University and needs tuition money; or you are planning a special vacation. Then you need to qualify for a loan above the remaining balance on your existing mortgage loan.In that case, you'll want You might not increase your mortgage payemnt, though, if you've had your existing loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you want to cash out some home equity to consolidate additional debt? Good plan! If you have a fair amount of home equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) could help save you a lot of cash each month.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off faster, while building up your equity faster? In that case, you'll want to look into refinancing to a short term mortgage - for example, a fifteen-year loan. You will be paying less interest and increasing your home equity more quickly, although your mortgage payments will likely be higher than they were. Conversely, if your existing long-term mortgage has a low remaining balance, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you figure out your options and the many benefits of refinancing, please contact us at 469-640-0400. We are here for you.
Curious about refinancing your home? Call us: 469-640-0400.