Which Refinancing Program is Best for You?
Even though it may seem like it sometimes, there aren't as many refinance loan programs as there are applicants! Contact us at (281) 778-0805 and we will match you with the loan program that fits you best. There are several questions to ask yourself while you consider the options.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a good choice may be a low fixed-rate loan. Maybe you currently hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Even if interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. This can be especially a wise idea if you don't plan to move within the next five years or so. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower payments.
Are you refinancing mainly to "cash out" some home equity? Perhaps you want to update your kitchen, take care of your college kid's tuition, or go on a dream vacation. In this case, you'll want to look for a loan above the balance remaining on your existing mortgage loan.With this goal, you want If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Do you hold other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have a fair amount of equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a chunk of money each month.
Getting a Shorter Term Loan
Do you plan to build up home equity quicker, and pay off your mortgage more quickly? If this is your wish, your refinance loan can change you to a mortgage program with a shorter term, such as a 15 year loan. Your mortgage payments will probably be higher than they were with the longer term loan, but in exchange, you will pay quite a bit less interest and will build up equity more quickly. However, if you have had your existing thirty year loan for a number of years and the remaining balance is rather low, you could be able to do this without raising your monthly payment — you may even be able to save! To help you figure out your options and the many benefits of refinancing, please contact us at (281) 778-0805. We will help you reach your goals!
Want to know more about refinancing? Call us: (281) 778-0805.