Which Refinancing Program is Best for You?
There aren't as many loan programs as there are borrowers, but sometimes it feels like it! Contact us at 469-322-4391 and we will match you with the loan program that fits you best. What are your goals for refinancing? Keeping in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, the best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even if interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can particularly be a great loan option. However, an ARM with a initial low payment could be a better way to lower your monthly payments if you plan on moving in the near future. Refinancing can also cause your finance charges to be more over the life of the loan.
Refinancing to Cash Outon Your Equity
Are you wanting to cash out some of your home equity with your refinance? Maybe you're dreaming of a cruise; you have to pay college tuition for your child; or you are updating your kitchen. With this in mind, you need to find a loan for more than the balance remaining of your present mortgage.With this goal, you will need However, if your interest rate is currently high and you've had it for quite a few years, you could be able to achieve your goals without making your mortgage payments rise.
Do you hold other debt, perhaps with a higher interest rate, that you want to consolidate? If you have built up some home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a lot of money every month.
Building up Equity More Quickly
Are you dreaming of paying your loan off faster, while building up your home equity quicker? Then, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. Although your monthly payment amount will likely be increased, you can be paying less interest; so your home equity will build up faster. But, you might be able to make the change without a bigger monthly payment if your longer term loan was closed a while ago, and the balance remaining is low enough. You may even make it lower! To help you understand your options and the multiple benefits in refinancing, please contact us at 469-322-4391. We will help you reach your goals!