Which Refinancing Loan Program is Right for You?
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When you are overwhelmed with so many options, it may seem as if there are even more loan programs than applicants! We can guide you to locate the refinance loan program that will fit your situation the best. Contact us at 214-532-4014 to get started. There are several questions to ask yourself as you look at your options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan may be a wise option for you. Maybe you now hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest varies. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your loan, even as interest rates rise. If you aren't expecting to sell your home in the near future (about five years), a fixed-rate mortgage can especially be a good choice. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Are you wanting to cash out some of your home equity in your refinance? Your home needs renovating; your son has been accepted to college and needs tuition money; or you are taking your family on a cruise. In this case, you'll need to find a loan above the remaining balance of your present mortgage.In this case, you'll want If you've had your existing mortgage for a number of years and/or have a mortgage whose interest rate is high, you may be able to do this without making your mortgage payment higher.
Do you want to pull out a portion of your equity to consolidate additional debt? Yes you can! If you own some higher interest debts (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have enough home equity.
Paying it off Sooner
Are you planning to fatten your home equity faster, and pay your mortgage off more quickly? You should consider refinancing with a short-term loan, like a 15-year mortgage. You will be paying less interest and growing your equity more quickly, although your mortgage payments will likely be higher than they were. However, if you have held your existing 30-year loan for a number of years and the remaining balance is rather low, you could be able to do this without raising your mortgage payment — it's even possible to save! To help you determine your options and the numerous benefits of refinancing, please call us at 214-532-4014. We are here to help you reach your goals!