Which Refinancing Loan Program is Right for You?
Although it may seem like it at times, there aren't as many loan options as there are applicants! Call us at (512) 335-7800 and we can help you qualify for the right refinance program for your financial needs. There are several questions to ask yourself as you review your choices.
Reducing Your Monthly Payments
Are achieving better payments and an improved rate your main reasons for refinancing? If so, your best option may be a low fixed-rate loan. Maybe you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the mortgage, even as interest rates rise. If you are planning to stay in your home for about five more years, a fixed rate mortgage may be an especially good option for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? Your house needs new carpet; your son has been accepted to University and needs tuition money; or you are planning a special vacation. So you will want to qualify for a loan for more than the remaining balance of your present mortgage loan.Then you will need If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Consolidating Your Debt
Do you want to pull out a portion of your home equity to consolidate other debt? Yes you can! If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars each month.
Switching to a Shorter Term Loan
Do you want to build up equity quicker, and pay off your mortgage faster? Then, you need to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. Your monthly payments will probably be more than they were with your long-term mortgage, but in exchange, you will pay considerably less interest and will build up equity quicker. Conversely, if your current longer term mortgage loan has a small remaining balance, and was closed a number of years ago, you may even be able to make the switch without paying more each month. To help you determine your options and the many benefits of refinancing, please contact us at (512) 335-7800. We are here for you.
Curious about refinancing your home? Give us a call at (512) 335-7800.