Which Refinancing Option is Right for You?
The number of refinance options available to borrowers can be overwhelming. Call us at (512) 335-7800 and we will match you with the refinance loan program that fits you best. In order to review your choices, you will need to think about your goals for your refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan may be a good option for you. Maybe you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — in which 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 your loan, even as interest rates rise. If you are expecting to stay in your home for at least five more years, a loan with a fixed rate may be a particulary good choice for you. However, an ARM with a low intitial payment could be a smarter way to lower your mortgage payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? Perhaps you want to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. In this case, you want to qualify for a loan for more than the remaining balance of your current mortgage.In that case, you will need You may not increase your mortgage payemnt, though, if you've had your current loan for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with a higher interest rate, that you want to consolidate? If you have enough home equity, taking care of other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) might help save you a chunk of cash every month.
Paying it off Faster
Are you hoping to fatten up your home equity faster, and get your mortgage paid off more quickly? If this is your goal, your refinance loan can change you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and growing your home equity more quickly, even though your monthly payments will generally be more than they were. But, you might be able to make the change without a bigger monthly mortgage payment if your longer term mortgage loan was closed a while back, and the remaining balance is somewhat low. You may even make it lower! To help you understand your options and the multiple benefits of refinancing, please contact us at (512) 335-7800. We are here for you.
Want to know more about refinancing? Call us: (512) 335-7800.