Selecting a Refinancing Option
There are not as many refinance loan programs as there are borrowers, but it feels like it at times! Call us at (512) 335-7800 and we'll help you qualify for the perfect loan program for your situation. There are some general things to have in mind while you look at your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the loan, even as interest rates rise. If you are planning to live in your home for at least five more years, a fixed rate loan may be an especially good option for you. However, if you can see yourself moving in the near future, an adjustable rate mortgage with a small initial rate may be the ideal way to bring down your monthly payment.
Getting Out some Cash
Is "cashing out" your primary purpose for your refinance? Maybe you're going on a much needed vacation; you have to pay college tuition for your child; or you are updating your kitchen. In this case, you want to look for a loan for more than the remaining balance on your present mortgage.So you'll want to qualify for a loan for a bigger amount than the remaining balance on your existing mortgage loan. However, if your loan interest rate is high now and you have held it for quite a few years, you could be able to accomplish your goals without making your mortgage payments rise.
Consolidating Your Debt
Do you want to pull out some home equity to consolidate other debt? Great plan! If you have any debt with steep interest (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of home equity.
Paying it off Faster
Do you plan to build up home equity more quickly, and pay off your mortgage more quickly? In that case, you'll need to find out about refinancing to a short term mortgage - like a fifteen-year mortgage loan. You will be paying less interest and increasing your equity faster, even though your mortgage payments will usually be more than they were. But, you may be able to switch without a higher monthly payment if your long term loan was closed a while back, and the remaining balance is somewhat low. You could even make it lower! To help you figure out your options and the many benefits of refinancing, please contact us at (512) 335-7800. We are here to help you reach your goals!
Curious about refinancing? Give us a call: (512) 335-7800.