Refinancing: Which Option is for You?

When you are overwhelmed with all the choices, it may seem like there are even more refinance programs than applicants! We can help you find the refinance program that can fit your situation the best. Call us at 214-869-7339 to get things started. In the interest of looking at your choices, you can consider your goals for your refinance.

Making Your Payments Lower

Are getting lower mortgage payments and a better rate your main refinance goals? In that case, applying for a low, fixed-rate loan may be a good option for you. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even when interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. If you aren't expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise option. On the other hand, if you do see yourself selling your home in the near future, an ARM mortgage with a low initial rate may be the best way to reduce your monthly payments.

Cashing Out

Is "cashing out" your main purpose for your refinance? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. Then you will want to get a loan higher than the balance remaining of your current mortgage.Then you want You might not increase your mortgage payemnt, though, if you have had your current loan for a long time, and/or your loan interest rate is high.

Debt Consolidation

Do you have other debt, perhaps with high interest, that you need to consolidate? If you hold some higher interest debts (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of home equity.

Building up Equity Faster

Do you need to build up home equity quicker, and pay off your mortgage faster? If this is your hope, your refinance can switch you to a mortgage loan program with a short, like a 15 year loan. Even though your mortgage payment amount will probably be more, you will save on interest; so your equity will rise up faster. But, you could be able to switch without a higher monthly payment if your longer term mortgage was closed a while ago, and the balance remaining is somewhat low. You may even make it lower! To help you figure out your options and the multiple benefits in refinancing, please contact us at 214-869-7339. We are here for you.

Want to know more about refinancing? Give us a call: 214-869-7339.