Selecting a Refinancing Loan

Although it may seem like it sometimes, there aren't as many refinance loan choices as there are borrowers! We can help you select the refinance program that will fit your situation the best. Contact us at (281) 778-0805 to get started. There are some general things to have in mind as you look at the choices.

Reducing Your Monthly Payments

Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right option for you. Maybe you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the rate of interest varies. Even when interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise choice. However, an ARM with a initial low payment could be a smarter way to lower your monthly payments if you see yourself moving within the near future.

Getting Out some Cash

Is "cashing out" your primary purpose for your refinance? Maybe you want to make home improvements, pay your child's college tuition bill, or go on a dream vacation. So you'll need to find a loan above the remaining balance on your present mortgage.Then you'll want to find a loan for a higher amount than the balance remaining on your current mortgage loan. If you've had your existing mortgage loan for a number of years and/or have a mortgage loan whose interest rate is high, you may be able to do this without making your monthly payment higher.

Consolidating Debt

Maybe you'd like to pull out some of the equity in your home (cash out) to use toward other debt. If you have the equity in your home to make it work, paying off other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save several hundred dollars in your monthly budget.

Getting a Shorter Term Loan

Are you wanting to fatten your equity faster, and pay off your mortgage sooner? If this is your plan, your refinance mortgage can move 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 home equity faster, although your payments will likely be more than they were. However, if you have held your existing 30 year mortgage for a number of years and the loan balance is relatively low, you may be able to do this without raising your mortgage payment — you might even be able to save! To help you figure out your options and the many benefits in refinancing, please contact us at (281) 778-0805. We are here for you.

Want to know more about refinancing? Call us: (281) 778-0805.

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