Refinancing: Which Loan Program is for You?
Even though it seems like it at times, there aren't as many refinance options as there are borrowers! We can help you choose the refinance program that will fit your financial situation the best. Call us at (281) 778-0805 to get started. What do you hope to achieve with refinancing? Considering in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are achieving better mortgage payments and a better rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even as interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you aren't expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a good loan option. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Refinancing to Cash Out
Is "cashing out" your primary purpose for refinancing? It could be you want to make home improvements, pay your child's college tuition bill, or take your family on a dream vacation. In this case, you will want to qualify for a loan higher than the balance remaining of your existing mortgage loan.With this goal, you will want However, if your interest rate is currently high and you have held it for quite a few years, you may be able to reach your goals without making your monthly payments bigger.
Consolidating Your Debt
Do you want to pull out some of your equity to consolidate additional debt? Excellent idea! If you hold some higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Paying it off Faster
Do you need to build up home equity quicker, and have your mortgage paid off sooner? Then, you'll need to look into refinancing to a short term mortgage - such as a fifteen-year loan. Even though your monthly payments will probably be increased, you can be paying less interest; so your equity will build up faster. But, you could be able to make the change without a higher monthly payment if your longer term mortgage was closed a while back, and the balance remaining is small. You could even make it lower! To help you understand your options and the multiple benefits in refinancing, please call us at (281) 778-0805. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us at (281) 778-0805.