Choosing a Refinancing Option
There are not as many loan program choices as there are borrowers, but sometimes it seems like it! We can guide you to locate the loan program that will fit your financial situation the best. Call us at (512) 335-7800 to get things started. There are several things to bear in mind while you consider your options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even as interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. If you expect to stay in your home for at least five more years, a loan with a fixed rate may be a particulary good choice for you. However, an ARM with a initial low payment could be a smarter way to reduce your payments if you see yourself moving in the near future.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? Perhaps you want to make home improvements, take care of your college kid's tuition, or go on a special family vacation. Then you need to get a loan for more than the balance remaining on your current mortgage loan.With this goal, you will want to find a loan program for a higher amount than the remaining balance on your existing mortgage loan. However, if your mortgage rate is currently high and you've had it for a long time, you may be able to achieve your goals without a rise in your mortgage payment.
Consolidating Your Debt
Perhaps you'd like to cash out a portion of the equity in your home (cash out) to use toward other debt. If you have the equity in your home for it, paying off other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars in your budget each month.
Building up Equity More Quickly
Are you planning to fatten up your equity faster, and get your mortgage paid off sooner? You should consider refinancing with a shorterterm loan, often a 15-year mortgage. The payments will probably be more than they were with the long-term mortgage loan, but in exchange, that you will pay substantially less interest and can build up equity more quickly. But, you might be able to make the change without a bigger monthly mortgage payment if your longer term mortgage was closed a while back, and the remaining balance is somewhat low. You may even pay less! To help you determine your options and the multiple benefits in refinancing, please call us at (512) 335-7800. We are here for you.
Curious about refinancing your home? Give us a call: (512) 335-7800.