Which Refinancing Option is Best for You?
There are not as many refinance loan options as there are applicants, but it seems like it sometimes! Call us at (281) 778-0805 and we will match you with the refinance program that is best for your needs. There are some general things to keep in mind while you review the options.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, the best option might be a low fixed-rate loan. Maybe you currently have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate varies. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage loan, even if interest rates rise. If you aren't expecting to move in the near future (about 5 years), a fixed-rate mortgage can particularly be a good option. However, an ARM with a low intitial payment could be a smarter way to reduce your monthly payments if you see yourself moving within the near future.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? Perhaps you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you need to get a loan above the remaining balance of your present mortgage loan.Then you'll want You might not increase your monthly payemnt, though, if you've had your existing mortgage for a long time, and/or your interest rate is high.
Do you have other debt, maybe with a higher interest rate, that you need to consolidate? If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars in your monthly budget.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while building up your equity quicker? Then, you'll want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. The monthly payments will likely be more than with the longer term loan, but in exchange, you will pay quite a bit less interest and can build up equity quicker. But, you may be able to switch without a bigger monthly mortgage payment if your longer term loan was closed a while ago, and the balance remaining is low enough. You may even pay less! To help you determine your options and the multiple benefits in refinancing, please contact us at (281) 778-0805. We can help you reach your goals!
Curious about refinancing your home? Call us at (281) 778-0805.