Selecting a Refinancing Loan
There are not as many loan program choices as there are applicants, but at times it feels like it! Contact us at 214-869-7339 and we will match you with the refinance program that is ideal for you. What are your reasons 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, applying for a low, fixed-rate loan might be a good option for you. Maybe you are currently in a loan with a high, fixed interest rate, or a loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in the low rate for the term of your loan. If you aren't expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can particularly be a good loan option. On the other hand, if you can see yourself moving in the near future, an adjustable rate mortgage with a small initial rate could be the ideal way to bring down your monthly payments.
Are you refinancing primarily to pull out some of your home equity for an infusion of cash? Maybe you want to make home improvements, take care of your college kid's tuition, or take a cruise. With this in mind, you want to find a loan for more than the balance remaining of your current mortgage.Then you want to need to get a loan for a higher amount than the remaining balance on your present mortgage. However, if your interest rate is currently high and you have held it for a long time, you may be able to achieve your goals without making your monthly payments bigger.
Perhaps you hope to cash out some equity (cash out) to put toward other debt. If you own some higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Building up Equity Faster
Are you dreaming of paying off your loan sooner, while building up your equity faster? Then, you'll need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. The mortgage payments will likely be higher than they were with your long-term mortgage loan, but in exchange, that you will pay considerably less interest and can build up equity quicker. However, if you've held your existing thirty-year mortgage for a number of years and the remaining balance is rather low, you might be do this without increasing your mortgage payment — it's even possible to save! To help you determine your options and the many benefits of refinancing, please contact us at 214-869-7339. We will help you reach your goals!
Want to know more about refinancing your home? Call us: 214-869-7339.