Choosing a Refinancing Loan
Although it may seem like it at times, there aren't as many refinance options as there are borrowers! Contact us at (512) 335-7800 and we will match you with the refinance loan program that fits you best. In order to review your options, you should think about your goals for the refinance.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even when rates get higher later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low rate for the life of your mortgage. This is especially a wise idea if you don't think you'll be selling your home within the next five years or so. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Refinancing to Cash Out
Is "cashing out" your primary purpose for refinancing? Maybe you're planning a special vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. Then you will want to qualify for a loan higher than the balance remaining of your present mortgage.In this case, you will want to need to get a loan for a higher amount than the remaining balance on your existing mortgage. If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you may be able to do this without making your monthly payment bigger.
Consolidating Your Debt
Do you want to cash out some of your equity to consolidate other debt? Yes you can! If you have the equity in your home to make it work, paying off other high interest debt (for example: home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars each month.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off faster, while building up your home equity quicker? If this is your plan, the refinance mortgage can move you to a mortgage loan program with a short, such as a 15 year loan. You will be paying less interest and growing your home equity more quickly, although your mortgage payments will generally be bigger than you were paying. However, if you have held your current 30 year mortgage loan for a long time and the loan balance is somewhat low, you may be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you determine your options and the numerous benefits in refinancing, please call us at (512) 335-7800. We are here for you.
Want to know more about refinancing? Call us at (512) 335-7800.