Choosing a Refinancing Option
There are an enormous number of refinancing options available to borrowers. Call us at 214-869-7339 and we'll help you qualify for the best refinance loan program for your financial needs. In order to review your choices, you should determine your goals for the refinance.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? If so, your best choice may be a low fixed-rate loan. Maybe you currently hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the life of your mortgage. If you are planning to stay in your home for at least five more years, a fixed rate loan may be a particulary good choice for you. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Is "cashing out" your primary reason for your refinance? 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. So you want to apply for a loan above the remaining balance on your current mortgage loan.Then you'll You'll want to find a loan for more than the current balance with your existing mortgage loan in that case. However, if your mortgage rate is high now and you've had it for quite a few years, you could be able to achieve your goals without an increase in your mortgage payment.
Do you have other debt, perhaps with a high interest rate, that you need to consolidate? If you have the equity in your home to make it work, taking care of other high interest debt (such as credit cards, home equity loans, or car loans) means you can save possibly several hundred dollars in your budget each month.
Building up Equity Faster
Do you want to build up home equity more quickly, and pay off your mortgage sooner? If this is your goal, your refinance mortgage can move you to a loan program with a shorter term, for example: a 15 year loan. Your payments will probably be more than with your longer term loan, but the pay-off is: that you will pay substantially less interest and can build up equity quicker. On the other hand, if your existing longer term loan has a low balance remaining, and was closed a while ago, you may even be able to make the move without paying more each month. To help you understand your options and the numerous benefits in refinancing, please contact us at 214-869-7339. We will help you reach your goals!
Curious about refinancing? Call us at 214-869-7339.