Choosing a Refinancing Option
The number of refinance options available to borrowers is truly breathtaking. Call us at 214-869-7339 and we can help you qualify for the perfect refinance program to fit your needs. What are your goals for refinancing? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the best option for you. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you set that low rate for the life 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 especially be a great loan option. However, an ARM with a low intitial payment could be a smarter way to lower your mortgage payments if you expect to move in the near future.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? Your house needs renovating; your son has gone to University and needs tuition; or you are taking your family on a cruise. Then you will need to apply for a loan for more than the remaining balance of your current mortgage loan.So you'll want You may not increase your monthly payemnt, however, if you have had your current loan for a number of years, and/or your loan interest rate is high.
Do you hold other debt, maybe with higher interest, that you need to consolidate? If you have enough home equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a chunk of money each month.
Paying it off Sooner
Are you planning to fatten up your equity faster, and pay your mortgage off sooner? Consider refinancing with a shorterterm loan, like a 15-year mortgage. The mortgage payments will probably be higher than they were with the longer term mortgage, but in exchange, you will pay quite a bit less interest and can build up equity more quickly. Conversely, if your current long-term loan has a low remaining balance, 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 determine your options and the multiple benefits in refinancing, please call us at 214-869-7339. We will help you reach your goals!
Want to know more about refinancing? Give us a call at 214-869-7339.