Choosing a Refinancing Loan
There aren't as many refinance loan programs as there are borrowers, but at times it feels like it! Call us at (281) 778-0805 and we will help you qualify for the right loan program to fit your financial needs. There are several things to have in mind while you consider the options.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan might be a good choice for you. Perhaps you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you aren't planning on moving in the near future (about five years), a fixed-rate mortgage can particularly be a wise choice. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced mortgage payments.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? Perhaps you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. So you need to find a loan for more than the remaining balance on your current mortgage.Then you want to need to find a loan program for a higher number than the remaining balance on your existing mortgage. If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Do you want to pull out a portion of your equity to consolidate other debt? Good plan! If you have built up some home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a lot of money every month.
Paying it off Sooner
Are you planning to fatten up your equity faster, and pay off your mortgage more quickly? In that case, you need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. You will be paying less interest and growing your home equity faster, even though your monthly payments will usually be more than they were. However, if you've had your existing 30-year loan for a long time and the remaining balance is somewhat low, you could be do this without increasing your mortgage payment — it's even possible to save! To help you understand your options and the many benefits in refinancing, please contact us at (281) 778-0805. We will help you reach your goals!
Curious about refinancing your home? Give us a call: (281) 778-0805.