Refinancing: Which Option is for You?
There aren't as many loan programs as there are applicants, but at times it feels like it! Contact us at (972) 292-0448 and we can work with you to qualify you for the perfect refinance loan program for your needs. In the interest of looking at your choices, you can list what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, a good choice might be a low fixed-rate loan. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies - an adjustable rate mortgage (ARM). Different that 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. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great choice. However, an ARM with a low intitial payment could be a better way to lower your payments if you plan on moving within the near future.
Are you wanting to cash out some of your equity in your refinance? Maybe you need to update your kitchen, pay your child's college tuition bill, or take your dream vacation. With this in mind, you'll need to look for a loan for more than the balance remaining of your existing mortgage.So you'll You will be looking for a loan for more than the remaining balance with your current mortgage in this case. If you've had your current mortgage for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.
Do you want to pull out some of your equity to consolidate additional debt? Excellent idea! If you have any debt with steep interest (such as credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the equity built up to make it work.
Switching to a Shorter Term Loan
Are you hoping to fatten your equity faster, and get your mortgage paid off more quickly? You should consider refinancing with a short-term loan, often a 15-year mortgage. Your payments will likely be higher than with your longer term mortgage loan, but the pay-off is: you will pay substantially less interest and will build up equity quicker. But, you could be able to make the change without a bigger monthly payment if your long term mortgage loan was closed a while ago, and the balance remaining is low enough. You may even pay less! To help you determine your options and the many benefits in refinancing, please contact us at (972) 292-0448. We are here for you.
Want to know more about refinancing? Call us: (972) 292-0448.