Refinancing: Which Loan Program is for You?
Although it seems like it sometimes, there are not as many loan options as there are borrowers! We can help you choose the refinance program that can fit your situation the best. Call us at (281) 778-0805 to get things started. There are several things to bear in mind while you review the choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, the best option could be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you set the low interest rate for the life of your mortgage. This can be particularly a good choice if you don't think you'll be selling your home within the next five years or so. However, if you do see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate might be the ideal way to lower your monthly payment.
Are you wanting to cash out some of your equity in your refinance? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you want to get a loan above the balance remaining on your present mortgage.Then you will You will be looking for a loan for more than the current balance on your current mortgage in this case. If you've had your existing mortgage loan for a long time and/or have a mortgage loan whose interest rate is high, you may be able to do this without increasing your mortgage payment.
Perhaps you hope to cash out some of the equity in your home (cash out) to use toward other debt. If you own any higher interest debts (like credit cards or vehicle 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 right amount of equity.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while building up your equity faster? Consider refinancing to a short-term loan, such as a 15-year mortgage. Your monthly payments will likely be more than they were with the longer term loan, but in exchange, that you will pay quite a bit less interest and can build up equity more quickly. But, you could be able to make the change without a higher monthly mortgage payment if your longer term loan was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you determine your options and the many benefits in refinancing, please call us at (281) 778-0805. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us at (281) 778-0805.