Which Refinancing Program is Right for You?
There are not as many refinance loan options as there are borrowers, but sometimes it feels like it! We can help you choose the loan program that can fit your financial situation the best. Contact us at 214-869-7339 to begin the process. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then a good option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you plan to stay in your home for about five more years, a fixed-rate loan may be an especially good choice for you. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate to get lower monthly payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for your refinance? Perhaps you're going on a much needed vacation; you have to pay college tuition for your child; or you are updating your kitchen. Then you'll want to find a loan above the remaining balance on your current mortgage.So you will want to need to get a loan program for a higher amount than the remaining balance on your present mortgage loan. However, if your interest rate is currently high and you have held it for quite a few years, you could be able to reach your goals without making your monthly payments bigger.
Do you want to cash out some home equity to consolidate other debt? Good plan! If you have built up some equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a chunk of money every month.
Getting a Shorter Term Loan
Are you planning to fatten up your home equity faster, and pay your mortgage off more quickly? Consider refinancing to a shorterterm loan, often a 15-year mortgage loan. Even though your monthly payment amount will probably be more, you can be paying less interest; so your equity will build up faster. But, you may be able to switch without a higher monthly payment if your long term loan was closed a while ago, and the balance remaining is low enough. You may even make it lower! To help you determine your options and the many benefits in refinancing, please contact us at 214-869-7339. We are here for you.
Curious about refinancing your home? Give us a call at 214-869-7339.