Refinancing: Which Option is for You?
There are not as many loan program choices as there are borrowers, but it seems like it at times! We can guide you to locate the refinance loan program that can fit your needs the best. Contact us at (512) 291-6100 to get started. There are several things to bear in mind while you review the options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan might be a wise 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. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the loan, even as interest rates rise. This kind of loan is particularly a wise choice if you aren't planning a move within the next five years or so. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get lower payments.
Is "cashing out" your main purpose for your refinance? Your home needs renovating; your son has been accepted to University and needs tuition; or you are taking your family on a cruise. With this in mind, you'll want to qualify for a loan for more than the remaining balance of your current mortgage.So you You will need to qualify for a loan for more than the current balance of your present mortgage loan in that case. However, if your loan interest rate is currently high and you've held it for quite a few years, you could be able to achieve your goals without an increase in your mortgage payment.
Do you have other debt, maybe with a high interest rate, that you'd like to consolidate? If you own any debt with high interest (such as credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you planning to fatten up your home equity faster, and pay your mortgage off sooner? If this is your hope, the refinance can move you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and growing your equity faster, although your payments will likely be bigger than they were. However, if you've held your current 30-year mortgage for a long time and the remaining balance is somewhat low, you might be do this without raising your monthly payment — it's even possible to save! To help you figure out your options and the multiple benefits in refinancing, please contact us at (512) 291-6100. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us: (512) 291-6100.