Refinancing: Which Program is for You?
Even though it may seem like it sometimes, there are not as many refinance options as there are applicants! Contact us at (972) 292-0448 and we will match you with the refinance loan program that best fits you. In the interest of looking at your options, you should think about your goals for the refinance.
Reducing Your Monthly Payments
Are achieving better monthly payments and a lower rate your main refinance goals? In that case, getting a low, fixed-rate loan could be a wise choice for you. Perhaps you currently hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even when interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can especially be a wise choice. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Are you hoping to cash out some of your equity with your refinance? Perhaps you need to make home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. So you want to apply for a loan for more than the remaining balance of your present mortgage.In that case, you You'll need to get a loan for more than the remaining balance with your current mortgage loan in this case. However, if your interest rate is currently high and you have held it for a long time, you may be able to reach your goals without a rise in your mortgage payment.
Perhaps you'd like to cash out some of the home equity (cash out) to put toward other debt. If you have enough home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might help save you a chunk of money every month.
Paying it off Sooner
Are you dreaming of paying off your loan faster, while beefing up your home equity quicker? Then, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year loan. Even though your monthly payments will probably be more, you will be paying less interest; so your home equity will rise up faster. Conversely, if your existing longer term mortgage loan has a low balance remaining, and was closed a while ago, you might be able to make the move without paying more each month. To help you understand your options and the multiple benefits of refinancing, please contact us at (972) 292-0448. We are here for you.
Want to know more about refinancing? Give us a call at (972) 292-0448.