Which Refinancing Option is Best for You?
Although it seems like it at times, there aren't as many loan programs as there are borrowers! Contact us at (512) 335-7800 and we can match you with the loan program that best fits you. What are your reasons for your refinance loan? Keeping in mind the information below will help you narrow your choices.
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 the ideal loan program for you. Maybe you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate varies. Even when rates get higher later, unlike with your ARM, when you get a mortgage with a fixed rate, you set the low interest rate for the life of your loan. If you plan to live in your home for at least five more years, a loan with a fixed rate may be a particulary good fit for you. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower payments.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Your home needs updating; your daughter has been accepted to University and needs tuition; or you are planning a special vacation. Then you will want to look for a loan higher than the balance remaining of your present mortgage loan.In that case, you want to find a loan for a bigger number than the remaining balance on your current mortgage loan. If you've had your current mortgage loan for a number of years and/or have a loan with a high interest rate, you might\could be able to do this without increasing your monthly payment.
Consolidating Your Debt
Do you hold other debt, perhaps with high interest, that you need to consolidate? If you have enough home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a lot of money every month.
Building up Equity More Quickly
Are you planning to fatten your home equity faster, and pay off your mortgage sooner? In that case, you need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage program. Your payments will probably be more than 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 switch without a bigger monthly payment if your longer term mortgage loan was closed a while ago, and the balance remaining is low enough. You could even pay less! To help you figure out your options and the many benefits in refinancing, please call us at (512) 335-7800. We will help you reach your goals!
Curious about refinancing your home? Give us a call: (512) 335-7800.