Choosing a Refinancing Loan

The huge number of refinance options available can be overwhelming. Call us at (512) 335-7800 and we can work with you to qualify you for the best refinance loan program for your needs. There are several questions to ask yourself as you review the options.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? Then a good option may be a low fixed-rate loan. Maybe you are currently in a loan with a high, fixed interest rate, or a loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the life of your mortgage. A fixed-rate mortgage can be particularly a wise idea if you don't plan to sell your home within the next 5 years or so. 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 reduced monthly payments.

Refinancing to Cash Out

Is "cashing out" your main reason for your refinance? Perhaps you want to update your kitchen, pay your child's college tuition bill, or take a cruise. In this case, you will want to get a loan above the balance remaining on your current mortgage.With this goal, you You'll be looking for a loan for a bigger amount than the remaining balance of your existing mortgage loan in this case. You might not increase your mortgage payemnt, though, if you've had your existing loan for a long time, and/or your interest rate is high.

Consolidating Debt

Do you have other debt, perhaps with a high interest rate, that you need to consolidate? If you have a fair amount of home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a chunk of money each month.

Building up Equity More Quickly

Are you dreaming of paying your loan off more quickly, while beefing up your home equity faster? You should consider refinancing with a shorterterm loan, often a 15-year mortgage. You will be paying less interest and growing your home equity faster, even though your payments will generally be bigger than they were. Conversely, if your current long-term mortgage loan has a low remaining balance, and was closed a number of years ago, you may be able to make the move without paying more each month. To help you understand your options and the numerous benefits in refinancing, please call us at (512) 335-7800. We will help you reach your goals!

Want to know more about refinancing? Give us a call at (512) 335-7800.

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