Choosing a Refinancing Option
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than applicants! We can guide you to choose the refinance program that will fit your situation the best. Contact us at (281) 778-0805 to get started. In the interest of looking at your options, you should consider your goals for your refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — in which the rate of interest can vary. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage loan, even as interest rates rise. This kind of loan is especially a wise choice if you don't think you'll be selling your home within the next 5 years or so. However, if you can see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate could be the best way to bring down your monthly payments.
Refinancing to Cash Out
Are you refinancing primarily to pull out some of your home equity for an infusion of cash? Your home needs updating; your daughter has gone to University and needs tuition; or you are planning a special vacation. In this case, you'll need to find a loan above the remaining balance on your present mortgage loan.So you will want to qualify for a loan program for a higher amount than the balance remaining on your present mortgage loan. If you've had your existing mortgage for a long time and/or have a mortgage with a high interest rate, you might\could be able to do this without increasing your monthly payment.
Maybe you hope to pull out some of the equity in your home (cash out) to use toward other debt. If you have a fair amount of home equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might help save you a lot of money each month.
Paying it off Faster
Do you want to build up equity more quickly, and have your mortgage paid off more quickly? If this is your hope, your refinance loan can switch you to a mortgage loan program with a shorter term, for example: a 15 year loan. You will be paying less interest and growing your equity faster, even though your payments will usually be higher than they were. But, you might be able to switch without a higher monthly payment if your longer term mortgage loan was closed a while back, and the balance remaining is somewhat low. You may even make it lower! To help you figure out your options and the numerous benefits in refinancing, please contact us at (281) 778-0805. We are here for you.
Curious about refinancing? Give us a call at (281) 778-0805.