Refinancing: Which Loan Program is for You?
Even though it seems like it at times, there are not as many refinance loan options as there are borrowers! Contact us at 214-865-7442 and we will match you with the refinance loan program that best fits you. surveying your choices, you need to think about what you want to achieve with the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan could be a wise option for you. Maybe you currently have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest varies. Even as interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. This kind of loan can be particularly a good option if you don't think you will sell your home within the next 5 years or so. However, an ARM with a initial low payment may be a smarter way to lower your monthly payments if you plan on moving in the next few years.
Is your refinance goal mainly to "cash out" some home equity? Maybe you need to make home improvements, take care of your college kid's tuition, or go on a dream vacation. So you want to find a loan for more than the balance remaining on your current mortgage loan.So you will want to need to get a loan program for a higher amount than the balance remaining on your existing mortgage loan. However, if your mortgage rate is currently high and you have held it for quite a few years, you could be able to accomplish your goals without making your monthly payments rise.
Do you hold other debt, maybe with higher interest, that you'd like to consolidate? If you have the equity in your home to make it work, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars each month.
Building up Equity More Quickly
Are you planning to fatten up your home equity faster, and pay your mortgage loan off sooner? If this is your goal, the refinance loan can switch you to a mortgage loan program with a shorter term, like a 15 year loan. Even though your mortgage payments will likely be increased, you will be paying less interest; so your equity amount will build up faster. On the other hand, if your current longer term mortgage has a small remaining balance, and was closed a while ago, you may even be able to make the change without paying more each month. To help you understand your options and the many benefits of refinancing, please call us at 214-865-7442. We are here for you.
Want to know more about refinancing your home? Call us at 214-865-7442.