Selecting a Refinancing Loan
Although it may seem like it at times, there aren't as many loan programs as there are applicants! We can guide you to locate the refinance loan program that can fit your situation the best. Contact us at 469-640-0400 to begin the process. There are some general things to have in mind while you look at your choices.
Making Your Payments Lower
Are getting reduced mortgage payments and an improved rate your main reasons for refinancing? If so, a good choice could be a low fixed-rate loan. Maybe you are now in a loan with a high, fixed interest rate, or a mortgage in which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in the low interest rate for the term of your mortgage. If you are not planning a move in the near future (about five years), a fixed rate mortgage loan can particularly be a good loan option. On the other hand, if you do see yourself moving before too long, an ARM mortgage with a small initial rate could be the best way to reduce your monthly payment.
Refinancing to Cash Out
Is "cashing out" your main purpose for your refinance? Perhaps you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. In this case, you'll need to get a loan higher than the balance remaining on your present mortgage loan.In this case, you will want If you've had your current mortgage for a long time and/or have a loan whose interest rate is high, you might\could be able to do this without increasing your monthly payment.
Maybe you want to pull out some of the equity in your home (cash out) to put toward other debt. If you own any debt with higher interest (such as credit cards or car loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of home equity.
Building up Equity Faster
Do you need to build up home equity quicker, and have your mortgage paid off more quickly? In that case, you need to find out about refinancing to a short term mortgage - like a fifteen-year loan. Your monthly payments will probably be higher than they were with your long-term mortgage, but in exchange, that you will pay considerably less interest and will build up equity more quickly. On the other hand, if your existing long-term mortgage has a low balance remaining, and was closed a number of years ago, you could be able to make the switch without paying more each month. To help you determine your options and the multiple benefits in refinancing, please contact us at 469-640-0400. We are here to help you reach your goals!
Curious about refinancing? Give us a call at 469-640-0400.