Refinancing: Which Loan Program is for You?
There are a huge number of refinancing programs available to borrowers. Call us at 214-869-7339 and we'll help you qualify for the best loan program to fit your financial needs. What are your goals for refinancing? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you expect to stay in your home for at least five more years, a loan with a fixed rate may be a particulary good choice for you. However, an ARM with a low intitial payment could be a smarter way to lower your monthly payments if you expect to move within the near future.
Are you planning to cash out some of your home equity with your refinance? It could be you want to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. So you will want to get a loan for more than the remaining balance on your existing mortgage loan.With this goal, you'll want to need to get a loan program for a bigger amount than the balance remaining on your current mortgage. However, if your loan interest rate is currently high and you've had it for a long time, you could be able to reach your goals without an increase in your mortgage payment.
Do you have other debt, perhaps with a high interest rate, that you want to consolidate? If you have enough home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a chunk of money each month.
Building up Equity Faster
Do you need to build up home equity quicker, and have your mortgage paid off faster? Consider refinancing to a short-term loan, often a 15-year mortgage loan. Your payments will likely be more than they were with the long-term mortgage loan, but the pay-off is: you will pay considerably less interest and will build up equity more quickly. However, if you have had your current 30 year mortgage loan for a number of years and the loan balance is rather low, you could be able to do this without raising your monthly payment — it's even possible to save! To help you determine your options and the many benefits in refinancing, please call us at 214-869-7339. We are here for you.
Want to know more about refinancing? Call us: 214-869-7339.