Selecting a Refinancing Option
Even though it may seem like it sometimes, there aren't as many loan options as there are applicants! Contact us at 325-998-8740 and we'll help you qualify for the best refinance program for your needs. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if rates rise later, unlike with your ARM, when you close a fixed rate mortgage, you lock in that low rate for the term of your mortgage. A fixed-rate mortgage is especially a good option if you don't expect to sell your home within the next 5 years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced monthly payments.
Refinancing to Cash Out
Is your refinance goal primarily to "cash out" some home equity? Your home needs renovating; your son has been accepted to college and needs tuition; or you are taking your family on a cruise. With this in mind, you will want to qualify for a loan for more than the remaining balance of your current mortgage loan.So you'll want to find a loan for a higher amount than the balance remaining on your existing mortgage. If you've had your current mortgage for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Perhaps you'd like to pull out a portion of the equity in your home (cash out) to put toward other debt. If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars per month.
Building up Equity Faster
Are you dreaming of paying your loan off faster, while beefing up your home equity faster? In that case, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. You will be paying less interest and growing your home equity faster, although your monthly payments will usually be more than they were. On the other hand, if your existing long-term mortgage has a small 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 determine your options and the numerous benefits of refinancing, please call us at 325-998-8740. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call: 325-998-8740.