Selecting a Refinancing Option
Even though it seems like it at times, there aren't as many loan programs as there are applicants! Contact us at (281) 778-0805 and we'll work with you to qualify you for the right refinance loan to fit your situation. In the interest of looking at your choices, you should list what you want to achieve with your refinance.
Making Your Payments Lower
Are achieving reduced mortgage payments and a better rate your main refinance goals? Then the best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even when interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. This can be especially a wise idea if you don't think you'll be selling your home 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 in order to achieve reduced monthly payments.
Getting Out some Cash
Is "cashing out" your primary purpose for refinancing? Maybe you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you need to find a loan higher than the balance remaining on your present mortgage loan.So you want You might not have an increase in your mortgage payemnt, however, if you've had your current mortgage for a long time, and/or your interest rate is high.
Consolidating Your Debt
Do you hold other debt, maybe with a high interest rate, that you need to consolidate? If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars monthly.
Switching to a Shorter Term Loan
Do you want to build up home equity more quickly, and have your mortgage paid off faster? Then, you'll need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. The monthly payments will likely be higher than they were with a longer term loan, but in exchange, you will pay considerably less interest and can build up equity quicker. However, if you have had your current 30 year mortgage loan for a long time and the loan balance is rather low, you could be able to do this without increasing your monthly mortgage payment — you could even be able to save! To help you determine your options and the multiple benefits in refinancing, please call us at (281) 778-0805. We are here for you.
Want to know more about refinancing your home? Call us at (281) 778-0805.