Which Refinancing Loan Program is Best for You?
The huge number of refinance options available is truly breathtaking. Call us at 817-431-8618 and we can match you with the refinance loan program that fits you best. 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, the best option could be a low fixed-rate loan. Maybe you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you close a fixed-rate mortgage, you set the low rate for the life of your mortgage. This can be especially a good choice if you don't expect to move within the next 5 years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Are you refinancing primarily to "cash out" some home equity? Your house needs improvements; your daughter has been accepted to University and needs tuition money; or you have a special family vacation planned. With this in mind, you will want to qualify for a loan above the balance remaining of your present mortgage. With this goal, you will need to get a loan for a higher amount than the balance remaining of your current home loan in this case. You might not increase your mortgage payment, however, if you've had your existing mortgage loan for a while, and/or your loan interest rate is high.
Do you have other debt, perhaps with high interest, that you'd like to consolidate? If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars monthly.
Paying it off Faster
Are you wanting to fatten your equity faster, and pay off your mortgage loan sooner? Then, you need to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage program. Even though your mortgage payment amount will probably be increased, you can save on interest; so your equity amount will build up faster. However, if you have held your existing thirty year loan for a long time and the remaining balance is rather low, you could be able to do this without increasing your mortgage payment — it's even possible to save! To help you understand your options and the numerous benefits of refinancing, please contact us at 817-431-8618. We are here for you.