Which Refinancing Loan Program is Best for You?
There are an enormous number of refinancing options available to borrowers. Contact us at (972) 292-0448 and we will match you with the refinance program that best fits you. surveying your options, you should list your goals for the refinance.
Lowering Your Payments
Are achieving lower monthly payments and an improved rate your main refinance goals? In that case, a low, fixed rate loan may be the best option for you. Maybe you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even as interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for about five more years, a fixed rate mortgage may be a particulary good option for you. However, if you can see yourself selling your home in the near future, an ARM mortgage with a low initial rate could be the best way to lower your monthly payment.
Refinancing to Cash Out
Are you planning to cash out some of your equity in your refinance? Your house needs new carpet; your daughter has gone to University and needs tuition money; or you are taking your family on a cruise. Then you will want to find a loan higher than the balance remaining of your existing mortgage loan.With this goal, you will want to qualify for a loan for a higher amount than the remaining balance on your existing mortgage. If you've had your existing mortgage for a number of years and/or have a loan with a high interest rate, you may be able to do this without making your mortgage payment bigger.
Do you have other debt, perhaps with a high interest rate, that you need to consolidate? If you have some debt with higher interest (such as credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you dreaming of paying off your loan more quickly, while building up your home equity faster? If this is your goal, your refinance can switch you to a mortgage program with a shorter term, like a 15 year loan. The payments will probably be higher than with a long-term mortgage loan, but in exchange, you will pay quite a bit less interest and will build up equity quicker. On the other hand, if your existing long-term mortgage loan has a low balance remaining, and was closed a number of years ago, you may even be able to make the switch without paying more each month. To help you understand your options and the numerous benefits in refinancing, please call us at (972) 292-0448. We are here to help you reach your goals!
Want to know more about refinancing? Call us: (972) 292-0448.