Selecting a Refinancing Program
Even though it seems like it at times, there are not as many refinance choices as there are borrowers! We can guide you to find the refinance program that will fit your financial situation the best. Contact us at (512) 291-6100 to get started. What are your reasons for refinancing? Considering in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage, even as interest rates rise. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise option. On the other hand, if you can see yourself moving before too long, an ARM mortgage with a small initial rate may be the ideal way to lower your monthly payments.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? Perhaps you need to make home improvements, pay your child's college tuition bill, or take your family on a dream vacation. So you will need to qualify for a loan higher than the remaining balance of your present mortgage.In that case, you will want to qualify for a loan for a higher amount than the balance remaining on your existing mortgage. However, if your interest rate is currently high and you've held it for quite a few years, you may be able to achieve your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you hold other debt, perhaps with higher interest, that you'd like to consolidate? If you have the home equity for it, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars per month.
Paying it off Sooner
Do you plan to build up equity quicker, and pay off your mortgage more quickly? In that case, you need to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. Although your mortgage payments will usually be more, you can save on interest; so your equity amount will build up faster. On the other hand, if your current long-term mortgage loan has a low remaining balance, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you determine your options and the multiple benefits in refinancing, please contact us at (512) 291-6100. We are here for you.
Want to know more about refinancing? Call us at (512) 291-6100.