Selecting a Refinancing Loan
When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than applicants! We can help you select the loan program that can fit your situation the best. Call us at (512) 335-7800 to get things started. There are some general things to have in mind while you look at your options.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the right choice for you. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage, even as interest rates rise. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a good loan option. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced mortgage payments.
Getting Out some Cash
Is "cashing out" your main reason for refinancing? Your home needs renovating; your son has gone to college and needs tuition money; or you are taking your family on a cruise. So you'll want to get a loan for more than the remaining balance on your present mortgage.With this goal, you'll You'll be looking for a loan for a bigger amount than the remaining balance of your current mortgage loan in this case. You may not have an increase in your monthly payemnt, however, if you've had your current mortgage loan for a long time, and/or your loan interest rate is high.
Do you hold other debt, perhaps with high interest, that you'd like to consolidate? If you own some higher interest debts (such as credit cards or car loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you wanting to fatten your equity faster, and get your mortgage paid off more quickly? In that case, you'll want to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. You will be paying less interest and growing your equity more quickly, even though your payments will likely be more than they were. However, if you have had your existing thirty year loan for a long time and the loan balance is rather low, you might be do this without increasing your mortgage payment — you could even be able to save! To help you figure out your options and the numerous benefits of refinancing, please contact us at (512) 335-7800. We would love to help you reach your goals!
Curious about refinancing your home? Give us a call: (512) 335-7800.