Selecting a Refinancing Program
There aren't as many loan options as there are applicants, but it seems like it at times! Call us at (972) 292-0448 and we will work with you to qualify you for the right loan program to fit your situation. In order to review your choices, you need to consider your goals for the refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your loan, even if interest rates rise. A fixed-rate mortgage is particularly a good option if you don't think you'll be moving within the next five years or so. However, an ARM with a low intitial payment could be a better way to reduce your monthly payments if you expect to move in the next few years.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? Perhaps you need to make home improvements, pay your child's college tuition bill, or go on a special family vacation. With this in mind, you want to find a loan above the remaining balance on your existing mortgage.So you'll need If you've had your current mortgage loan for a number of years and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Do you want to cash out some home equity to consolidate other debt? Great plan! If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars each month.
Building up Equity More Quickly
Do you plan to build up equity more quickly, and have your mortgage paid off faster? Then, you need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. Although your monthly payment amount will usually be more, you can save on interest; so your equity amount will rise up faster. But, you might be able to make the change without much increase in your monthly payment if your longer term mortgage was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you understand your options and the numerous benefits in refinancing, please contact us at (972) 292-0448. We are here to help you reach your goals!
Curious about refinancing? Call us: (972) 292-0448.