Choosing a Refinancing Loan
Although it may seem like it sometimes, there are not as many loan programs as there are borrowers! Call us at (512) 335-7800 and we'll help you qualify for the best refinance program for your financial situation. What are your goals for your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then 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 varies. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the loan, even if interest rates rise. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great loan option. However, if you can see yourself moving before too long, an ARM with a low initial rate could be the best way to bring down your monthly payments.
Getting Out some Cash
Is "cashing out" your main reason for refinancing? It could be you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. Then you need to get a loan higher than the remaining balance of your present mortgage.Then you'll You'll need to qualify for a loan for a higher amount than the current balance on your existing mortgage loan in this case. You might not increase your mortgage payemnt, however, if you've had your existing mortgage loan for a number of years, and/or your interest rate is high.
Do you hold other debt, perhaps with high interest, that you need to consolidate? If you have the home equity for it, paying off other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars in your monthly budget.
Switching to a Shorter Term Loan
Are you wanting to fatten up your home equity faster, and pay off your mortgage loan more quickly? If this is your wish, your refinance loan can switch you to a mortgage loan program with a shorter term, for example: a 15 year loan. You will be paying less interest and growing your equity faster, although your payments will likely be higher than they were. However, if you've held your current 30 year mortgage loan for a number of years and the loan balance is somewhat low, you could be do this without increasing your monthly payment — it's even possible to save! To help you determine your options and the many benefits in refinancing, please call us at (512) 335-7800. We would love to help you reach your goals!
Want to know more about refinancing? Call us: (512) 335-7800.