Selecting a Refinancing Option
When you are overwhelmed with all the options, it may seem as if there are even more loan programs than applicants! Contact us at 972.798.2110 and we will match you with the refinance loan program that best fits you. There are some general things to bear in mind as you review your options.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage, even when interest rates rise. A fixed-rate mortgage can be particularly a good idea if you aren't planning a move within the next 5 years or so. However, an ARM with a initial low payment may be a wiser way to reduce your payments if you expect to move in the near future.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? Maybe you need to make home improvements, take care of your college kid's tuition, or take a cruise. With this in mind, you'll want to find a loan higher than the remaining balance on your existing mortgage loan.With this goal, you will want You might not have an increase in your monthly payemnt, however, if you've had your current loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you have other debt, perhaps with higher interest, that you'd like to consolidate? If you have the home equity for it, taking care of other high interest debt (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars per month.
Building up Equity More Quickly
Do you hope to build up equity quicker, and pay off your mortgage faster? If this is your goal, the refinance mortgage can change you to a loan program with a short, such as a 15 year loan. You will be paying less interest and increasing your home equity faster, even though your payments will likely be bigger than you were paying. However, if you've had your existing 30-year loan for a number of years and the loan balance is relatively low, you could be do this without increasing your mortgage payment — you could even be able to save! To help you figure out your options and the many benefits of refinancing, please call us at 972.798.2110. We are here to help you reach your goals!
Want to know more about refinancing? Call us at 972.798.2110.