Choosing a Refinancing Program
There aren't as many loan program choices as there are applicants, but it seems like it at times! Call us at (512) 335-7800 and we will match you with the loan program that is best for you. surveying your options, you need to think about your goals for your refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a good choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even when rates rise later, unlike with your ARM, when you close a mortgage with a fixed rate, you set that low rate for the life of your loan. A fixed-rate mortgage is especially a good option if you aren't planning a move within the next five years or so. On the other hand, if you do see yourself moving within the next few years, an ARM with a low initial rate might be the ideal way to reduce your monthly payment.
Getting Out some Cash
Are you hoping to cash out some of your home equity in your refinance? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. Then you'll need to get a loan above the balance remaining on your present mortgage loan.With this goal, you'll You'll be looking for a loan for a bigger amount than the remaining balance on your current home loan in this case. You might not have an increase in your monthly payemnt, though, if you've had your existing loan for a while, and/or your interest rate is high.
Maybe you want to cash out some equity in your home (cash out) to use toward other debt. If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars monthly.
Switching to a Shorter Term Loan
Do you plan to build up home equity more quickly, and have your mortgage paid off sooner? Consider refinancing with a short-term loan, often a 15-year mortgage loan. The payments will probably be more than they were with your long-term mortgage loan, but the pay-off is: you will pay quite a bit less interest and will build up equity more quickly. On the other hand, if your existing long-term mortgage has a low remaining balance, and was closed a while ago, you could be able to make the switch without paying more each month. To help you understand your options and the multiple benefits of refinancing, please contact us at (512) 335-7800. We are here for you.
Want to know more about refinancing your home? Give us a call: (512) 335-7800.