Refinancing: Which Option is for You?
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There are not as many loan options as there are applicants, but sometimes it feels like it! Contact us at 972-334-0566 and we can match you with the loan program that best fits you. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for about five more years, a fixed-rate loan may be an especially good choice for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Are you wanting to cash out some of your equity in your refinance? Your home needs improvements; your son has been accepted to University and needs tuition; or you are taking your family on a cruise. With this in mind, you will want to find a loan higher than the remaining balance on your present mortgage.With this goal, you want However, if your mortgage rate is currently high and you've had it for quite a few years, you could be able to accomplish your goals without a rise in your mortgage payment.
Do you want to pull out a portion of your home equity to consolidate additional debt? Great plan! If you have built up some equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) might be able to save you a lot of cash each month.
Building up Equity More Quickly
Are you hoping to fatten up your equity faster, and get your mortgage paid off more quickly? You should consider refinancing with a short-term loan, like a 15-year mortgage loan. Even though your mortgage payment amount will usually be increased, you can be paying less interest; so your equity amount will build up faster. Conversely, if your existing longer term mortgage loan has a low balance remaining, and was closed a while ago, you may even be able to make the switch without paying more each month. To help you understand your options and the multiple benefits of refinancing, please call us at 972-334-0566. We are here for you.
Curious about refinancing your home? Call us: 972-334-0566.