Selecting a Refinancing Option
Although it may seem like it sometimes, there aren't as many refinance choices as there are borrowers! Call us at (512) 335-7800 and we will match you with the refinance loan program that fits you best. In order to review your choices, you will need to list what you want to achieve with the refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan could be a good option for you. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in that low rate for the term of your loan. This kind of loan is especially a good choice if you aren't planning a move within the next 5 years or so. However, if you do see yourself moving before too long, an ARM with a small initial rate could be the best way to reduce your monthly payment.
Getting Out some Cash
Are you refinancing mainly to pull out some home equity for an infusion of cash? Maybe you need to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. So you need to find a loan higher than the remaining balance of your present mortgage.With this goal, you will need You may not increase your monthly payemnt, however, if you have had your existing mortgage for a while, and/or your loan interest rate is high.
Perhaps you'd like to pull out a portion of the equity (cash out) to put toward other debt. If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars in your monthly budget.
Building up Equity Faster
Are you wanting to fatten up your home equity faster, and get your mortgage paid off sooner? Then, you want to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage program. Although your mortgage payment amount will probably be increased, you can be paying less interest; so your home equity will rise up faster. On the other hand, if your existing long-term loan has a low remaining balance, and was closed a number of years ago, you might be able to make the move without paying more each month. To help you figure out your options and the many benefits in refinancing, please contact us at (512) 335-7800. We would love to help you reach your goals!
Want to know more about refinancing? Call us: (512) 335-7800.