Refinancing: Which Loan Program is for You?
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When you are overwhelmed with all the choices, it may seem like there are even more refinance programs than borrowers! We can guide you to choose the refinance loan program that can fit your situation the best. Contact us at (972)991-0080 to get started. There are some general things to keep in mind as you consider the options.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even if rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set that low interest rate for the term of your mortgage. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a great option. However, if you can see yourself moving within the next few years, an ARM with a small initial rate might be the best way to bring down your monthly payment.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? It could be you need to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. So you will need to find a loan above the remaining balance of your existing mortgage loan.With this goal, you'll want You might not have an increase in your monthly payment, though, if you've had your current loan for a number of years, and/or your loan interest rate is high.
Do you want to cash out some of your equity to consolidate additional debt? Good plan! If you have the home equity to make it work, paying off other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars monthly.
Paying it off Sooner
Are you dreaming of paying off your loan faster, while building up your equity more quickly? Consider refinancing to a shorterterm loan, such as a 15-year mortgage. You will be paying less interest and growing your home equity more quickly, even though your mortgage payments will usually be bigger than you were paying. But, you may be able to switch without a higher monthly mortgage payment if your long term loan was closed a while ago, and the balance remaining is low. You could even make it lower! To help you determine your options and the multiple benefits of refinancing, please contact us at (972)991-0080. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call at (972)991-0080.