Refinancing: Which Option is for You?
There are a huge number of refinancing options available to borrowers. Call us at 214-869-7339 and we will help you qualify for the perfect refinance loan to fit your financial needs. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan might be a wise option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even as interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. This kind of loan is particularly a good option if you don't think you'll be moving within the next 5 years or so. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate to get reduced payments.
Getting Out some Cash
Is "cashing out" your main reason for refinancing? Your home needs new carpet; your daughter has been accepted to college and needs tuition money; or you are planning a special vacation. Then you need to apply for a loan above the remaining balance on your present mortgage loan.Then you need If you've had your existing mortgage for quite a while and/or have a mortgage loan whose interest rate is high, you may be able to do this without increasing your monthly payment.
Do you want to cash out some of your home equity to consolidate additional debt? Excellent idea! If you have any higher interest debts (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 wanting to fatten up your equity faster, and pay your mortgage loan off more quickly? Then, you'll need to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. You will be paying less interest and increasing your equity more quickly, even though your mortgage payments will likely be bigger than they were. However, if you've held your existing thirty-year loan for a number of years and the remaining balance is somewhat low, you could be able to do this without raising your monthly payment — you may even be able to save! To help you determine your options and the numerous benefits in refinancing, please call us at 214-869-7339. We can help you reach your goals!
Want to know more about refinancing? Give us a call: 214-869-7339.