Which Refinancing Loan Program is Best for You?
When you are overwhelmed with all the options, it may seem like there are even more loan programs than applicants! We can guide you to choose the loan program that will fit your situation the best. Contact us at (512) 335-7800 to begin the process. surveying your choices, you need to consider what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan may be a wise option for you. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about five years), a fixed rate mortgage loan can especially be a good loan option. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary purpose for refinancing? It could be you need to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. So you want to find a loan for more than the balance remaining on your current mortgage loan.In that case, you want to need to find a loan for a higher number than the balance remaining on your present mortgage loan. If you've had your existing mortgage loan for quite a while and/or have a loan with high interest, you might\could be able to do this without making your mortgage payment higher.
Maybe you'd like to pull out some equity (cash out) to put toward other debt. If you have enough equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of cash each month.
Building up Equity More Quickly
Are you planning to fatten up your equity faster, and get your mortgage paid off more quickly? If this is your goal, your refinance loan can switch you to a loan program with a short, such as a 15 year loan. You will be paying less interest and increasing your equity more quickly, even though your monthly payments will likely be bigger than they were. On the other hand, if your existing longer term mortgage loan has a low balance remaining, and was closed a while ago, you could be able to make the move without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please contact us at (512) 335-7800. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call: (512) 335-7800.