Refinancing: Which Loan Program is for You?
When you are overwhelmed with all the options, it may seem as if there are even more loan programs than applicants! We can guide you to select the refinance loan program that will fit your financial situation the best. Call us at 469-640-0400 to get started. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are achieving lower mortgage payments and an improved rate your main reasons for refinancing? Then a good choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you set the low rate for the life of your mortgage. This kind of loan can be especially a good idea if you don't plan to move within the next 5 years or so. On the other hand, if you can see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate may be the ideal way to lower your monthly payment.
Getting Out some Cash
Are you wanting to cash out some of your equity with your refinance? Perhaps you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. So you want to get a loan higher than the balance remaining on your present mortgage loan.With this goal, you want to find a loan for a higher number than the balance remaining on your present mortgage. You might not have an increase in your monthly payemnt, though, if you have had your existing mortgage for a long time, and/or your interest rate is high.
Do you want to pull out a portion of your home equity to consolidate additional debt? Yes you can! If you hold any debt with steep interest (such as credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan more quickly, while building up your home equity faster? If this is your wish, the refinance loan can change you to a loan program with a short, like a 15 year loan. Although your mortgage payments will usually be more, you will save on interest; so your home equity will build up faster. However, if you have held your existing 30 year loan for a long time and the loan balance is relatively low, you might be able to do this without raising your mortgage payment — you may even be able to save! To help you determine your options and the many benefits of refinancing, please call us at 469-640-0400. We would love to help you reach your goals!
Curious about refinancing your home? Call us at 469-640-0400.