Choosing a Refinancing Program
The number of refinance options available is truly breathtaking. Call us at (512) 335-7800 and we will work with you to qualify you for the right refinance loan to fit your financial situation. There are several things to bear in mind as you consider the choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, the best choice may be a low fixed-rate loan. Perhaps you now have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates rise later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in the low rate for the term of your mortgage. If you are not planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise choice. However, an ARM with a low intitial payment could be a smarter way to lower your mortgage payments if you expect to move in the next few years.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? Maybe you need to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. With this in mind, you'll need to get a loan higher than the balance remaining of your current mortgage.So you will want to need to find a loan program for a higher number than the remaining balance on your present mortgage loan. You might not have an increase in your mortgage payemnt, though, if you have had your current mortgage for a number of years, and/or your loan interest rate is high.
Do you hold other debt, perhaps with a high interest rate, that you need to consolidate? If you own any higher interest debts (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have enough home equity.
Paying it off Sooner
Do you need to build up home equity more quickly, and pay off your mortgage more quickly? Then, you want to look into refinancing to a short term mortgage - such as a fifteen-year mortgage loan. The monthly payments will likely be higher than they were with your long-term mortgage loan, but in exchange, that you will pay considerably less interest and will build up equity quicker. However, if you have had your existing thirty year loan for a long time and the remaining balance is rather low, you may be do this without increasing your monthly payment — it's even possible to save! To help you understand your options and the multiple benefits of refinancing, please contact us at (512) 335-7800. We are here for you.
Want to know more about refinancing? Call us at (512) 335-7800.