Choosing a Refinancing Option
When you are overwhelmed with so many options, it may seem like there are even more refinance programs than applicants! We can guide you to locate the refinance loan program that can fit your needs the best. Contact us at (832) 730-2000 to get started. There are several questions to ask yourself while you review your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a good choice for you. Perhaps you currently hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — in which the interest rate varies. Even when interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you aren't planning on moving in the near future (about five years), a fixed rate mortgage loan can especially be a wise choice. However, an ARM with a low intitial payment could be a better way to reduce your mortgage payments if you see yourself moving within the near future.
Refinancing to Cash Out
Is "cashing out" your primary purpose for your refinance? Maybe you want to make home improvements, pay your child's college tuition bill, or take your dream vacation. Then you want to find a loan for more than the balance remaining on your existing mortgage loan.So you'll want to find a loan program for a higher amount than the remaining balance on your existing mortgage loan. However, if your mortgage rate is high now and you have held it for quite a few years, you may be able to reach your goals without an increase in your mortgage payment.
Do you want to pull out a portion of your home equity to consolidate additional debt? Excellent idea! If you have a fair amount of home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a lot of money each month.
Getting a Shorter Term Loan
Are you planning to fatten your home equity faster, and pay your mortgage off more quickly? In that case, you need to find out about refinancing to a short term mortgage - like a fifteen-year mortgage program. You will be paying less interest and growing your home equity faster, even though your payments will usually be higher than they were. But, you could be able to switch without a bigger monthly payment if your long term mortgage 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 contact us at (832) 730-2000. We are here to help you reach your goals!
Want to know more about refinancing? Give us a call at (832) 730-2000.