Choosing a Refinancing Loan
There aren't as many loan options as there are applicants, but sometimes it feels like it! Contact us at 214-869-7339 and we will help you qualify for the perfect loan program to fit your needs. What do you hope to achieve with refinancing? Keeping in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Unlike 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 plan to stay in your home for about five more years, a fixed rate loan may be a particulary good choice for you. However, an ARM with a low intitial payment may be a smarter way to lower your monthly payments if you plan on moving within the near future.
Are you refinancing primarily to pull out some of your equity for an infusion of cash? It could be you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. In this case, you need to get a loan above the balance remaining on your current mortgage.So you want If you've had your existing mortgage for a long time and/or have a loan with a high interest rate, you might\could be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Perhaps you'd like to pull out some of the equity (cash out) to use toward other debt. If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars monthly.
Building up Equity More Quickly
Are you dreaming of paying your loan off sooner, while building up your home equity quicker? Consider refinancing to a short-term loan, often a 15-year mortgage loan. The payments will likely be higher than they were with your long-term loan, but the pay-off is: that you will pay substantially less interest and can build up equity more quickly. But, you may be able to switch without a higher monthly payment if your longer term mortgage loan was closed a while back, and the remaining balance is somewhat low. You may even pay less! To help you understand your options and the multiple benefits of refinancing, please call us at 214-869-7339. We are here to help you reach your goals!
Curious about refinancing? Give us a call: 214-869-7339.