Which Refinancing Program is Best for You?
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There aren't as many loan program choices as there are applicants, but sometimes it seems like it! Call us at (903) 630-7049 and we'll help you qualify for the right refinance program for your financial needs. There are several questions to ask yourself as you look at the choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan might be a wise option for you. Maybe you are presently in a mortgage with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the loan, even if interest rates rise. If you plan to live in your home for at least five more years, a fixed-rate loan may be an especially good fit for you. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? It could be you need to pay for home improvements, take care of your college kid's tuition, or take your family on a dream vacation. So you will want to find a loan above the balance remaining of your present mortgage.With this goal, you'll want to need to get a loan for a higher amount than the remaining balance on your existing mortgage loan. However, if your mortgage rate is high now and you have held it for quite a few years, you could be able to reach your goals without making your mortgage payments higher.
Consolidating Your Debt
Do you want to pull out a portion of your home equity to consolidate additional debt? Excellent idea! If you have a fair amount of home equity, paying toward other debt with higher interest that 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 off your loan faster, while beefing up your home equity more quickly? In that case, you need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. The monthly payments will probably be higher than with a longer term loan, but in exchange, that you will pay quite a bit less interest and can build up equity more quickly. But, you might be able to make the change without a bigger monthly payment if your long term mortgage loan was closed a while back, and the balance remaining is small. You may even make it lower! To help you figure out your options and the many benefits in refinancing, please call us at (903) 630-7049. We would love to help you reach your goals!
Curious about refinancing? Call us: (903) 630-7049.