Selecting a Refinancing Loan
There aren't as many loan options as there are borrowers, but it feels like it at times! We can help you choose the refinance loan program that can fit your situation the best. Call us at (281) 778-0805 to begin the process. There are several questions to ask yourself as you look at your options.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, a good option may be a low fixed-rate loan. Maybe you currently hold 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 if interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. This can be particularly a wise choice if you don't think you'll be moving within the next five years or so. However, if you can see yourself moving in the near future, an ARM with a low initial rate may be the ideal way to lower your monthly payment.
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Maybe you're planning a special vacation; you need to pay college tuition for your child; or you are updating your kitchen. With this in mind, you'll want to get a loan above the remaining balance on your current mortgage.So you'll want However, if your interest rate is currently high and you've held it for quite a few years, you could be able to achieve your goals without making your monthly payments higher.
Do you have other debt, maybe with a high interest rate, that you want to consolidate? If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars in your budget each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan more quickly, while beefing up your equity faster? If this is your wish, your refinance loan can change you to a mortgage loan program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your home equity more quickly, although your mortgage payments will usually be bigger than they were. On the other hand, if your current long-term mortgage has a small remaining balance, and was closed a number of years ago, you might be able to make the move without paying more each month. To help you determine your options and the numerous benefits in refinancing, please contact us at (281) 778-0805. We are here for you.
Curious about refinancing? Call us at (281) 778-0805.