Refinancing: Which Option is for You?
There are not as many refinance loan programs as there are borrowers, but sometimes it feels like it! We can guide you to select the loan program that will fit your needs the best. Call us at (512) 291-6100 to begin the process. There are some general questions to ask yourself while you consider the options.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the right option for you. Maybe you currently have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even when interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. This kind of loan is particularly a good choice if you don't think you will move within the next five years or so. However, an ARM with a low intitial payment could be a better way to lower your mortgage payments if you expect to move in the near future.
Refinancing to Cash Out
Are you refinancing primarily to "cash out" some home equity? Your home needs improvements; your son has been accepted to University and needs tuition money; or you are taking your family on a cruise. With this in mind, you'll want to get a loan for more than the remaining balance of your existing mortgage loan.So you will want If you've had your current mortgage for a long time and/or have a loan with a high interest rate, you may be able to do this without increasing your monthly payment.
Do you want to pull out some of your home equity to consolidate other debt? Good plan! If you have any higher interest debts (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have enough equity.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off faster, while beefing up your home equity quicker? If this is your plan, your refinance mortgage can move you to a loan program with a short, like a 15 year loan. Although your mortgage payments will usually be increased, you will save on interest; so your equity will rise up faster. But, you could be able to switch without a bigger monthly payment if your long term mortgage loan was closed a while ago, and the balance remaining is low enough. You may even make it lower! To help you determine your options and the multiple benefits in refinancing, please contact us at (512) 291-6100. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call: (512) 291-6100.