Which Refinancing Program is Best for You?
When you are overwhelmed with so many options, it may seem as if there are even more refinance programs than borrowers! Call us at (281) 778-0805 and we can match you with the refinance loan program that is ideal for you. There are some general questions to ask yourself while you review the options.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, the best choice might be a low fixed-rate loan. Perhaps you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is particularly a wise choice if you aren't planning a move within the next five years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced monthly payments.
Are you wanting to cash out some of your equity with your refinance? Your house needs improvements; your son has gone to University and needs tuition money; or you have a special family vacation planned. With this in mind, you'll want to look for a loan higher than the remaining balance on your present mortgage loan.So you You will be looking for a loan for more than the balance remaining of your existing home loan in that case. However, if your mortgage rate is high now and you've had it for a long time, you may be able to reach your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you want to cash out some of your home equity to consolidate other debt? Good idea! If you have the home equity to make it work, paying off other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars in your monthly budget.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan more quickly, while beefing up your equity more quickly? Consider refinancing with a shorterterm loan, often a 15-year mortgage. You will be paying less interest and increasing your equity faster, although your payments will generally be bigger than you have been paying. However, if you have had your existing 30 year loan for a long time and the loan balance is relatively low, you could be able to do this without raising your mortgage payment — it's even possible to save! To help you determine your options and the multiple benefits of refinancing, please contact us at (281) 778-0805. We are here for you.
Curious about refinancing your home? Give us a call at (281) 778-0805.