Which Refinancing Option is Right for You?

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When you are overwhelmed with all the options, it may seem like there are even more loan programs than applicants! Call us at (214) 545-5700 and we will help you qualify for the perfect refinance program to fit your situation. In order to review your options, you need to consider what you want to achieve with the refinance.

Reducing Your Monthly Payments

Are achieving reduced mortgage payments and an improved rate your main refinance goals? If so, a good option might be a low fixed-rate loan. Perhaps you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about five years), a fixed rate mortgage loan can especially be a great choice. On the other hand, if you can see yourself selling your home in the near future, an ARM mortgage with a small initial rate may be the ideal way to reduce your monthly payment. Due to refinancing, your total finance charges can be higher over the life of the loan.

Refinancing to Cash Out

Is "cashing out" your main purpose for your refinance? It could be you're dreaming of a cruise; you need to pay college tuition for your child; or you are updating your kitchen. With this in mind, you'll need to get a loan for more than the balance remaining of your existing mortgage loan.With this goal, you'll want to qualify for a loan for a higher amount than the balance remaining on your current mortgage. If you've had your existing mortgage loan for a long time and/or have a loan with a high interest rate, you might\could be able to do this without making your monthly payment higher.

Debt Consolidation

Do you want to pull out some of your equity to consolidate additional debt? Yes you can! If you have enough equity, paying off other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) may be able to save you a lot of money every month.

Building up Equity More Quickly

Do you plan to build up equity more quickly, and have your mortgage paid off faster? If this is your goal, your refinance can move you to a mortgage program with a shorter term, like a 15 year loan. Your monthly payments will likely be higher than they were with your long-term loan, but the pay-off is: you will pay substantially less interest and will build up equity quicker. But, you may be able to switch without a bigger monthly mortgage payment if your long term mortgage was closed a while back, and the remaining balance is low enough. You could even make it lower! To help you figure out your options and the numerous benefits of refinancing, please call us at (214) 545-5700. We are here for you.

Curious about refinancing? Give us a call: (214) 545-5700.