Which Refinancing Program is Right for You?
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than borrowers! Call us at (281) 778-0805 and we can help you qualify for the perfect refinance loan program for your needs. What are your goals for refinancing? Keeping in mind the following will help you begin your decision process.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? If so, a good option could be a low fixed-rate loan. Perhaps you are presently in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set that low interest rate for the term of your mortgage. This kind of loan is particularly a good idea if you don't think you will move within the next 5 years or so. However, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a low initial rate may be the best way to reduce your monthly payments.
Is "cashing out" your main purpose for your refinance? Maybe you're going on a much needed vacation; you have to pay college tuition for your child; or you plan to renovate your home. So you will need to qualify for a loan above the remaining balance of your current mortgage.With this goal, you will You will be looking for a loan for a higher amount than the remaining balance on your present mortgage in that case. You may not increase your monthly payemnt, however, if you've had your current mortgage loan for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with a high interest rate, that you'd like to consolidate? If you own any debt with steep interest (such as credit cards or car loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have the equity built up to make it work.
Paying it off Faster
Do you need to build up home equity more quickly, and pay off your mortgage faster? You should consider refinancing to a short-term loan, like a 15-year mortgage loan. Your monthly payments will probably be higher than they were with your longer term mortgage, but in exchange, you will pay substantially less interest and can build up equity quicker. On the other hand, if your existing longer term mortgage loan has a low balance remaining, and was closed a while ago, you could be able to make the change without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please call us at (281) 778-0805. We are here for you.
Curious about refinancing your home? Give us a call: (281) 778-0805.