Refinancing: Which Program is for You?
There are an enormous number of refinancing programs available to borrowers. Contact us at 817-909-7916 and we will match you with the loan program that is best for your needs. What do you hope to achieve with your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are getting reduced payments and an improved rate your main refinance goals? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even when rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you set the low interest rate for the term of your loan. If you expect to stay in your home for about five more years, a fixed-rate loan may be a particularly good option for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Is your refinance goal primarily to pull out some equity for an infusion of cash? It could be you need to pay for home improvements, pay your child's college tuition bill, or take a cruise. So you'll want to apply for a loan above the remaining balance of your present mortgage.In this case, you will You will want to get a loan for more than the remaining balance with your current home loan in this case. If you've had your existing mortgage loan for a long time and/or have a loan with high interest, you may be able to do this without increasing your monthly payment.
Do you hold other debt, perhaps with a higher interest rate, that you need to consolidate? If you have a fair amount of home equity, paying toward other debt with higher interest that your home loan (credit cards or home equity loans, for example) may help save you a chunk of cash each month.
Building up Equity More Quickly
Are you wanting to fatten your home equity faster, and get your mortgage paid off more quickly? Then, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. Your monthly payments will probably be higher than with the longer term mortgage loan, but the pay-off is: that you will pay quite a bit less interest and can build up equity quicker. However, if you've had your existing 30-year mortgage loan for a number of years and the loan balance is relatively low, you may be able to do this without raising your monthly payment — you could even be able to save! To help you figure out your options and the numerous benefits in refinancing, please contact us at 817-909-7916. We are here for you.
Want to know more about refinancing? Call us at 817-909-7916.