Which Refinancing Option is Best for You?
There are a huge number of refinancing options available to borrowers. Contact us at (972) 292-0448 and we will work with you to qualify you for the right loan program for your financial situation. There are several questions to ask yourself as you consider your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the best option for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in the low interest rate for the term of your mortgage. If you aren't expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can especially be a good option. However, an ARM with a initial low payment may be a smarter way to lower your mortgage payments if you see yourself moving in the near future.
Is your refinance goal mainly to "cash out" some home equity? It could be you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. So you will want to find a loan higher than the remaining balance of your existing mortgage.In that case, you want If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you may be able to do this without making your mortgage payment bigger.
Do you have other debt, perhaps with a higher interest rate, that you need to consolidate? If you have the home equity for it, paying off other high interest debt (for example: credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars monthly.
Building up Equity More Quickly
Are you hoping to fatten your equity faster, and pay off your mortgage loan more quickly? Consider refinancing with a shorterterm loan, like a 15-year mortgage loan. The monthly payments will likely be higher than they were with the long-term mortgage, but in exchange, you will pay considerably less interest and can build up equity quicker. However, if you've had your current 30 year mortgage loan for a number of years and the remaining balance is somewhat low, you might be do this without increasing your mortgage payment — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please contact us at (972) 292-0448. We are here for you.
Curious about refinancing? Call us at (972) 292-0448.