Refinancing: Which Program is for You?

There are an enormous number of refinancing programs available to borrowers. Call us at 972.359.7766 and we can match you with the loan program that fits you best. What are your goals for refinancing? Considering in mind the information below will help you narrow your choices.

Lowering Your Payments

Are getting better monthly payments and a better rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. Maybe you currently have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the rate of interest varies. Even if interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can especially be a great loan option. However, if you can see yourself selling your home within the next few years, an ARM with a low initial rate may be the best way to bring down your monthly payments.

Cashing Out

Is "cashing out" your primary reason for your refinance? It could be you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. Then you will want to get a loan higher than the balance remaining of your current mortgage loan.Then you'll You'll be looking for a loan for a higher amount than the remaining balance of your current mortgage loan in this case. You might not increase your mortgage payment, however, if you have had your existing loan for a while, and/or your interest rate is high.

Consolidating Your Debt

Do you have other debt, maybe with higher interest, that you need to consolidate? If you have a fair amount of equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a lot of cash every month.

Building up Equity More Quickly

Are you planning to fatten up your equity faster, and pay off your mortgage sooner? Consider refinancing with a short-term loan, often a 15-year mortgage loan. Your monthly payments will likely be more than they were with your long-term loan, but the pay-off is: that you will pay considerably less interest and can build up equity quicker. But, you may be able to make the change without a higher monthly mortgage payment if your longer term mortgage loan was closed a while back, and the remaining balance is low. You may even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at 972.359.7766. We are here for you.