Refinancing: Which Loan Program is for You?
Even though it may seem like it at times, there are not as many loan programs as there are applicants! We can help you locate the loan program that can fit your financial situation the best. Call us at 214-865-7442 to get things started. There are some general things to have in mind while you look at your options.
Making Your Payments Lower
Are achieving lower payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the right option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set that low interest rate for the term of your mortgage. This kind of loan is especially a wise choice if you don't think you'll be moving within the next 5 years or so. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Getting Out some Cash
Are you planning to cash out some of your home equity in your refinance? It could be you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you want to find a loan higher than the remaining balance on your current mortgage loan.With this goal, you You will want to get a loan for more than the balance remaining on your current mortgage in that case. If you've had your current mortgage for quite a while and/or have a mortgage loan with high interest, you may be able to do this without making your monthly payment bigger.
Consolidating Your Debt
Perhaps you'd like to pull out some equity (cash out) to use toward other debt. If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars in your budget each month.
Building up Equity Faster
Are you hoping to fatten up your equity faster, and pay off your mortgage loan more quickly? If this is your hope, your refinance mortgage can switch you to a loan program with a short, for example: a 15 year loan. You will be paying less interest and increasing your home equity more quickly, although your mortgage payments will generally be more than you have been paying. However, if you've held your current thirty year mortgage loan for a number of years and the loan balance is somewhat low, you could be able to do this without raising your mortgage payment — you may even be able to save! To help you figure out your options and the many benefits of refinancing, please call us at 214-865-7442. We will help you reach your goals!
Want to know more about refinancing your home? Give us a call at 214-865-7442.
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