Choosing a Refinancing Program
Even though it seems like it sometimes, there are not as many refinance loan options as there are applicants! Call us at 214-869-7339 and we will match you with the loan program that fits you best. There are several things to bear in mind as you review the choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan might be a good choice for you. Perhaps you now have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even if interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. This kind of loan is especially a wise idea if you don't plan to sell your home within the next five years or so. However, an ARM with a initial low payment could be a wiser way to lower your payments if you plan on moving within the near future.
Getting Out some Cash
Is "cashing out" your main reason for refinancing? Your home needs new carpet; your son has gone to University and needs tuition; or you are planning a special vacation. In this case, you will want to find a loan higher than the balance remaining on your current mortgage loan.Then you will want to qualify for a loan program for a bigger amount than the balance remaining on your present mortgage loan. If you've had your current mortgage for quite a while and/or have a loan with a high interest rate, you may be able to do this without making your mortgage payment higher.
Maybe you'd like to pull out some of the equity in your home (cash out) to use toward other debt. If you have the home equity for it, paying off other high interest debt (like credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars a month.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while building up your equity more quickly? If this is your plan, your refinance loan can move you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and growing your equity more quickly, even though your monthly payments will likely be more than they were. However, if you have held your existing 30 year mortgage loan for a long time and the loan balance is somewhat low, you could be able to do this without increasing your monthly mortgage payment — you might even be able to save! To help you figure out your options and the numerous benefits of refinancing, please call us at 214-869-7339. We are here for you.
Want to know more about refinancing? Call us: 214-869-7339.