Which Refinancing Program is Best for You?
When you are overwhelmed with so many options, it may seem like there are even more refinance loan programs than borrowers! Call us at 972.798.2110 and we will match you with the loan program that fits you best. What do you hope to achieve with refinancing? Considering in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best option might be a low fixed-rate loan. Perhaps you currently hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even if interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you aren't expecting to move in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise loan option. However, an ARM with a initial low payment could be a better way to lower your monthly payments if you expect to move in the next few years.
Getting Out some Cash
Are you hoping to cash out some of your home equity in your refinance? Perhaps you're going on a much needed vacation; you have to pay college tuition for your child; or you plan to renovate your home. So you'll need to get a loan for more than the remaining balance on your existing mortgage loan.With this goal, you will You'll be looking for a loan for a higher amount than the current balance on your current mortgage in that case. However, if your interest rate is currently high and you have held it for a long time, you may be able to achieve your goals without a rise in your mortgage payment.
Maybe you want to cash out a portion of the equity (cash out) to use toward other debt. If you have a fair amount of equity, taking care of other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) could be able to save you a lot of cash every month.
Paying it off Faster
Are you wanting to fatten your home equity faster, and get your mortgage paid off sooner? You should consider refinancing with a short-term loan, like a 15-year mortgage loan. Your payments will likely be higher than with a longer term mortgage, but in exchange, that you will pay substantially less interest and can build up equity more quickly. However, if you've held your current 30 year loan for a number of years and the remaining balance is somewhat low, you could be do this without increasing your mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits in refinancing, please contact us at 972.798.2110. We are here for you.
Want to know more about refinancing? Call us: 972.798.2110.