Which Refinancing Program is Best for You?
There are a huge number of refinancing options available to borrowers. We can help you choose the refinance program that can fit your situation the best. Contact us at (512) 335-7800 to get started. There are several questions to ask yourself as you look at the choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan might be a wise choice for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can particularly be a good option. However, if you do see yourself moving before too long, an ARM with a small initial rate could be the ideal way to lower your monthly payments.
Are you planning to cash out some of your equity in your refinance? It could be you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you need to qualify for a loan higher than the balance remaining on your present mortgage.In that case, you want to need to find a loan program for a bigger amount than the balance remaining on your current mortgage. If you've had your current mortgage loan for a long time and/or have a mortgage loan with a high interest rate, you may be able to do this without making your mortgage payment higher.
Perhaps you'd like to pull out some of the equity (cash out) to use toward other debt. 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 (like credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars in your monthly budget.
Paying it off Sooner
Are you dreaming of paying off your loan faster, while beefing up your home equity more quickly? If this is your hope, your refinance can move you to a mortgage program with a short, such as a 15 year loan. Although your monthly payments will usually be more, you will save on interest; so your equity will rise up faster. But, you might be able to switch without much increase in your monthly payment if your longer term mortgage was closed a while back, and the balance remaining is low. You could even make it lower! To help you determine your options and the numerous benefits in refinancing, please contact us at (512) 335-7800. We are here for you.
Want to know more about refinancing? Give us a call: (512) 335-7800.