Choosing a Refinancing Option
Although it may seem like it at times, there are not as many loan options as there are applicants! We can guide you to select the loan program that will fit your needs the best. Contact us at 214-869-7339 to get things started. There are some general things to bear in mind while you look at the choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan might be a good choice for you. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise choice. However, an ARM with a low intitial payment could be a smarter way to lower your mortgage payments if you expect to move in the next few years.
Is "cashing out" your main reason for your refinance? Perhaps you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. So you'll want to qualify for a loan above the balance remaining on your existing mortgage loan.Then you want to need to get a loan for a higher number than the remaining balance on your current mortgage loan. You may not increase your mortgage payemnt, however, if you've had your existing loan for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you have other debt, perhaps with a high interest rate, that you want to consolidate? If you own any debt with high interest (like credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have enough equity.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while beefing up your home equity faster? If this is your plan, your refinance loan can change you to a mortgage loan program with a short, like a 15 year loan. Your monthly payments will probably be higher than with your longer term loan, but the pay-off is: you will pay considerably less interest and will build up equity more quickly. But, you may be able to switch without a bigger monthly payment if your long term mortgage loan was closed a while ago, and the remaining balance is small. You may even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at 214-869-7339. We are here for you.
Curious about refinancing your home? Call us: 214-869-7339.