Which Refinancing Loan Program is Right for You?
There are not as many refinance loan options as there are applicants, but sometimes it seems like it! Call us at (832) 730-2000 and we will help you qualify for the perfect refinance loan to fit your financial needs. There are several questions to ask yourself while you review your options.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan may be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage, even if interest rates rise. If you plan to live in your home for at least five more years, a fixed rate loan may be a particulary good choice for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Is "cashing out" your primary purpose for your refinance? It could be you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you'll want to get a loan for more than the remaining balance of your current mortgage.So you'll want to find a loan program for a bigger amount than the remaining balance on your existing mortgage. If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment higher.
Do you hold other debt, perhaps with higher interest, that you'd like to consolidate? If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars in your monthly budget.
Paying it off Faster
Do you need to build up home equity more quickly, and have your mortgage paid off more quickly? If this is your hope, your refinance can change you to a mortgage loan program with a shorter term, like a 15 year loan. You will be paying less interest and increasing your equity more quickly, even though your mortgage payments will usually be bigger than you have been paying. However, if you've held your current 30-year mortgage for a number of years and the loan balance is somewhat low, you could be able to do this without increasing your mortgage payment — it's even possible to save! To help you figure out your options and the numerous benefits of refinancing, please contact us at (832) 730-2000. We would love to help you reach your goals!
Curious about refinancing? Give us a call at (832) 730-2000.