Which Refinancing Program is Best for You?
The number of refinance options available can be overwhelming. Call us at (281) 778-0805 and we can match you with the loan program that fits you best. surveying your choices, you should list your goals for your refinance.
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 loan programs that you may want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even when interest rates rise. This can be particularly a wise idea if you don't plan to move within the next 5 years or so. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower payments.
Is "cashing out" your main purpose for your refinance? Maybe you want to pay for home improvements, pay your child's college tuition bill, or go on a special family vacation. Then you want to get a loan above the remaining balance on your present mortgage loan.Then you'll You'll need to apply for a loan for more than the remaining balance of your current mortgage in this case. However, if your interest rate is high now and you have held it for quite a few years, you may be able to achieve your goals without making your monthly payments bigger.
Maybe you'd like to pull out a portion of the equity in your home (cash out) to use toward other debt. If you have a fair amount of equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a lot of cash every month.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off faster, while building up your home equity more quickly? In that case, you'll need to find out about refinancing to a short term mortgage - such as a fifteen-year loan. You will be paying less interest and increasing your equity more quickly, even though your mortgage payments will usually be bigger than you have been paying. However, if you've had your current 30 year mortgage loan for a long time and the loan balance is relatively low, you may be able to do this without raising your monthly payment — you might even be able to save! To help you figure out your options and the multiple benefits in refinancing, please contact us at (281) 778-0805. We are here for you.
Want to know more about refinancing your home? Call us: (281) 778-0805.