Choosing a Refinancing Option
The number of refinance options available to borrowers can be overwhelming. Call 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 as you look at your options.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you plan to stay in your home for at least five more years, a fixed-rate loan may be a particulary good fit for you. On the other hand, if you can see yourself selling your home within several years, an ARM mortgage with a small initial rate could be the best way to reduce your monthly payment.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity with your refinance? Perhaps you're planning a special vacation; you have to pay college tuition for your child; or you are updating your kitchen. In this case, you'll want to find a loan higher than the balance remaining of your existing mortgage loan.With this goal, you will need If you've had your existing mortgage for a long time and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment bigger.
Consolidating Your Debt
Maybe you hope to pull out a portion of the equity in your home (cash out) to put toward other debt. If you have a fair amount of equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might help save you a chunk of cash each month.
Paying it off Faster
Do you need to build up equity quicker, and pay off your mortgage more quickly? Consider refinancing to a shorterterm loan, such as a 15-year mortgage. Even though your mortgage payments will likely be more, you will be paying less interest; so your equity will build up faster. But, you could be able to make the change without a higher monthly payment if your longer term mortgage was closed a while ago, and the balance remaining is small. You may even pay less! To help you determine your options and the many benefits in refinancing, please call us at (281) 778-0805. We are here for you.
Want to know more about refinancing your home? Give us a call at (281) 778-0805.