Selecting a Refinancing Option
There aren't as many loan programs as there are borrowers, but sometimes it feels like it! We can help you choose the loan program that can fit your financial situation the best. Call us at (512) 335-7800 to begin the process. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are achieving lower monthly payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even as interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a good option. On the other hand, if you can see yourself moving before too long, an adjustable rate mortgage with a low initial rate might be the ideal way to lower your monthly payment.
Are you wanting to cash out some of your equity in your refinance? It could be you want to pay for home improvements, pay your child's college tuition bill, or take a cruise. Then you'll want to look for a loan above the remaining balance on your current mortgage.With this goal, you'll need However, if your loan interest rate is currently high and you've had it for quite a few years, you may be able to accomplish your goals without an increase in your mortgage payment.
Consolidating Your Debt
Maybe you'd like to pull out a portion of the home equity (cash out) to put toward other debt. If you own some debt with high interest (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Switching to a Shorter Term Loan
Do you need to build up home equity quicker, and have your mortgage paid off sooner? If this is your plan, your refinance can switch you to a mortgage program with a short, like a 15 year loan. Although your mortgage payments will usually be increased, you will be paying less interest; so your home equity will build up faster. But, you might be able to switch without much increase in your monthly mortgage payment if your longer term loan was closed a while ago, and the remaining balance is small. You could even pay less! To help you figure out your options and the many benefits of refinancing, please call us at (512) 335-7800. We are here for you.
Want to know more about refinancing your home? Give us a call at (512) 335-7800.