Which Refinancing Option is Right for You?
There aren't as many refinance loan programs as there are applicants, but it seems like it sometimes! Call us at (512) 228-8859 and we can match you with the loan program that fits you best. In order to review your choices, you can think about what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are achieving lower monthly payments and an improved rate your main reasons for refinancing? In that case, a good choice might be a low fixed-rate loan. Maybe you are now in a loan with a high, fixed interest rate, or a loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you close a mortgage with a fixed rate, you set that low interest rate for the life of your mortgage. If you are not planning a move in the near future (about five years), a fixed-rate mortgage can especially be a good choice. However, an ARM with a low initial payment may be a wiser way to reduce your mortgage payments if you expect to move in the next few years.
Getting Out some Cash
Are you wanting to cash out some of your equity with your refinance? Your home needs new carpet; your daughter has been accepted to college and needs tuition; or you are taking your family on a cruise. Then you'll want to find a loan for more than the remaining balance on your current mortgage loan. With this goal, you You will need to get a loan for a bigger amount than the current balance with your present home loan in that case. If you've had your existing mortgage for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Do you hold other debt, perhaps with a high interest rate, that you'd like to consolidate? If you have the equity in your home to make it work, paying off other high interest debt (for example: credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars per month.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off faster, while beefing up your home equity quicker? Consider refinancing with a shorter term loan, often a 15-year mortgage. You will be paying less interest and growing your home equity faster, even though your payments will generally be higher than you have been paying. However, if you've held your existing 30-year loan for a number of years and the loan balance is rather low, you may be do this without raising your monthly payment — it's even possible to save! To help you understand your options and the many benefits of refinancing, please contact us at (512) 228-8859. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us at (512) 228-8859.