Which Refinancing Option is Right for You?
When you are overwhelmed with so many choices, it may seem like there are even more refinance loan programs than applicants! We can help you locate the refinance loan program that can fit your situation the best. Contact us at (281) 778-0805 to get things started. There are several things to keep in mind while you look at your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about 5 years), a fixed-rate mortgage can especially be a good choice. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate to get reduced payments.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? Your home needs new carpet; your son has been accepted to college and needs tuition; or you have a special family vacation planned. With this in mind, you will need to find a loan higher than the remaining balance on your current mortgage loan.In that case, you will want to qualify for a loan program for a bigger amount than the remaining balance on your existing mortgage. However, if your mortgage rate is high now and you have held it for a long time, you may be able to accomplish your goals without making your monthly payments rise.
Do you hold other debt, perhaps with a higher interest rate, that you need to consolidate? If you have enough home equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a chunk of money every month.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while beefing up your equity more quickly? Consider refinancing to a shorterterm loan, such as a 15-year mortgage. Although your mortgage payments will usually be more, you can be paying less interest; so your home equity will build up faster. However, if you've had your current thirty-year mortgage loan for a number of years and the loan balance is relatively low, you could be able to do this without increasing your mortgage payment — you might even be able to save! To help you determine your options and the numerous benefits in refinancing, please call us at (281) 778-0805. We can help you reach your goals!
Curious about refinancing your home? Call us at (281) 778-0805.