Refinancing: Which Option is for You?

There aren't as many refinance loan programs as there are applicants, but sometimes it seems like it! Contact us at (281) 778-0805 and we will match you with the loan program that best fits you. surveying your options, you can consider what you want to achieve with your refinance.

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. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate can vary. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your mortgage loan, even if interest rates rise. If you are expecting to live in your home for at least five more years, a fixed-rate loan may be an especially good option for you. However, an ARM with a low intitial payment may be a wiser way to reduce your payments if you expect to move in the near future.

Refinancing to Cash Out

Are you refinancing mainly to pull out some of your equity for an infusion of cash? Your home needs improvements; your son has gone to college and needs tuition money; or you are taking your family on a cruise. In this case, you will want to apply for a loan above the balance remaining on your current mortgage.With this goal, you will want to find a loan for a bigger number than the balance remaining on your current mortgage. If you've had your existing mortgage loan for a number of years and/or have a mortgage loan with high interest, you might\could be able to do this without making your monthly payment higher.

Consolidating Your Debt

Perhaps you want to cash 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, taking care of 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.

Switching to a Shorter Term Loan

Are you dreaming of paying off your loan sooner, while beefing up your home equity faster? If this is your goal, your refinance loan can move you to a loan program with a short, for example: a 15 year loan. The monthly payments will likely be higher than they were with the long-term loan, but the pay-off is: that you will pay considerably less interest and can build up equity more quickly. However, if you've held your current 30-year loan for a long time and the loan balance is rather low, you could be do this without raising your monthly payment — it's even possible to save! To help you figure out your options and the many benefits of refinancing, please call us at (281) 778-0805. We are here for you.

Curious about refinancing? Give us a call: (281) 778-0805.

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