Selecting a Refinancing Option
There are an enormous number of refinancing options available to borrowers. Contact us at (281) 778-0805 and we can help you qualify for the perfect refinance loan for your needs. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the ideal choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even if rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low rate for the life of your mortgage. If you are expecting to stay in your home for at least five more years, a loan with a fixed rate may be an especially good option for you. On the other hand, if you do see yourself selling your home in the near future, an ARM with a low initial rate might be the best way to lower your monthly payment.
Is "cashing out" your primary purpose for your refinance? Your home needs improvements; your son has been accepted to University and needs tuition; or you are taking your family on a cruise. With this in mind, you'll need to look for a loan above the balance remaining on your current mortgage loan.In that case, you'll You will be looking for a loan for a bigger amount than the remaining balance on your current mortgage in this case. You may not have an increase in your monthly payemnt, though, if you've had your existing mortgage loan for a while, and/or your interest rate is high.
Do you want to pull out some of your equity to consolidate other debt? Excellent idea! If you have a fair amount of home equity, paying off other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of money every month.
Paying it off Faster
Do you want to build up equity quicker, and pay off your mortgage sooner? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. The monthly payments will likely be more than with the longer term mortgage, but in exchange, that you will pay quite a bit less interest and will build up equity more quickly. But, you might be able to make the change without a bigger monthly payment if your longer term mortgage loan was closed a while back, and the remaining balance is low. You could even pay less! To help you figure out your options and the multiple benefits of refinancing, please contact us at (281) 778-0805. We are here for you.
Curious about refinancing? Call us at (281) 778-0805.