Which Refinancing Program is Best for You?
There are not as many loan options as there are borrowers, but it feels like it at times! Call us at (832) 730-2000 and we'll help you qualify for the perfect refinance loan for your financial needs. What are your reasons for your refinance loan? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving reduced monthly payments and an improved rate your main refinance goals? In that case, getting a low, fixed-rate loan could be a wise option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even when interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. This can be especially a good option if you don't think you'll be moving within the next 5 years or so. On the other hand, if you can see yourself selling your home within the next few years, an adjustable rate mortgage with a small initial rate might be the best way to lower your monthly payments.
Are you planning to cash out some of your equity in your refinance? Maybe you need to pay for home improvements, pay your child's college tuition bill, or take a cruise. So you'll want to get a loan for more than the balance remaining of your present mortgage loan.In that case, you'll need If you've had your current mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without making your mortgage payment higher.
Do you have other debt, maybe with high interest, that you'd like to consolidate? If you own some debt with high interest (like credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Are you hoping to fatten your home equity faster, and pay your mortgage loan off more quickly? Consider refinancing with a short-term loan, often a 15-year mortgage. You will be paying less interest and increasing your equity faster, although your payments will likely be bigger than you were paying. However, if you have held your existing thirty year loan for a long time 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 determine your options and the multiple benefits of refinancing, please call us at (832) 730-2000. We would love to help you reach your goals!
Curious about refinancing? Call us at (832) 730-2000.