Which Refinancing Program is Right for You?
The huge number of refinance options available can be overwhelming. We can guide you to locate the loan program that can fit your situation the best. Contact us at (512) 335-7800 to begin the process. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are achieving lower monthly payments and an improved rate your main reasons for refinancing? Then a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage, even as interest rates rise. This can be especially a good choice if you don't think you'll be moving within the next five years or so. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate to get reduced mortgage payments.
Are you planning to cash out some of your home equity in your refinance? It could be you need to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. Then you need to get a loan higher than the balance remaining on your current mortgage.With this goal, you'll need You might not increase your mortgage payemnt, however, if you have had your current mortgage for a while, and/or your interest rate is high.
Do you want to cash out some of your home equity to consolidate additional debt? Great plan! If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can possible save several hundred dollars a month.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your equity quicker? If this is your goal, your refinance can change you to a loan program with a shorter term, for example: a 15 year loan. Your payments will probably be more than with the longer term mortgage loan, but in exchange, that you will pay substantially less interest and can build up equity quicker. On the other hand, if your existing long-term mortgage has a low balance remaining, and was closed a while ago, you could be able to make the change without paying more each month. To help you understand your options and the many benefits in refinancing, please call us at (512) 335-7800. We are here for you.
Want to know more about refinancing? Give us a call at (512) 335-7800.