Refinancing: Which Program is for You?
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The number of refinance options available can be overwhelming. Call us at (972) 818-0022 and we can match you with the refinance program that best fits you. What do you hope to achieve with refinancing? Keeping in mind the following will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan may be a good choice for you. Perhaps you now hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — in which the interest rate can vary. Even if rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you set the low rate for the life of your loan. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise option. On the other hand, if you can see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate may be the best way to bring down your monthly payment.
Getting Out some Cash
Is your refinance goal primarily to pull out some home equity for an infusion of cash? Your house needs renovating; your son has gone to University and needs tuition; or you are planning a special vacation. So you want to apply for a loan above the balance remaining of your present mortgage.In this case, you will You will be looking for a loan for a bigger amount than the current balance of your present mortgage loan in that case. If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without making your monthly payment higher.
Do you have other debt, maybe with high interest, that you'd like to consolidate? If you have some debt with higher interest (like credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have the equity built up to make it work.
Building up Equity More Quickly
Are you planning to fatten up your home equity faster, and pay off your mortgage loan more quickly? Consider refinancing to a short-term loan, like a 15-year mortgage. The mortgage payments will probably be higher than with a longer term mortgage, but in exchange, you will pay quite a bit less interest and will build up equity quicker. However, if you have held your existing 30-year mortgage for a number of years and the loan balance is relatively low, you could be able to do this without raising your mortgage payment — it's even possible to save! To help you understand your options and the many benefits in refinancing, please contact us at (972) 818-0022. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call: (972) 818-0022.