Which Refinancing Loan Program is Best for You?
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There are a huge number of refinancing programs available to borrowers. We can help you find the refinance program that will fit your financial situation the best. Call us at 713-370-LOAN(5626) to get things 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? In that case, a low, fixed rate loan may be the right choice for you. Perhaps you now have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Even if interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are expecting to stay in your home for about five more years, a fixed rate mortgage may be a particularly good choice for you. However, an ARM with a initial low payment may be a smarter way to reduce your payments if you expect to move in the near future.
Getting Out some Cash
Is your refinance goal mainly to pull out some equity for an infusion of cash? Your house needs improvements; your son has gone to University and needs tuition money; or you are taking your family on a cruise. With this in mind, you'll want to apply for a loan for more than the balance remaining of your existing mortgage.So you will You will be looking for a loan for a bigger amount than the current balance with your present mortgage loan in that case. However, if your mortgage rate is currently high and you've had it for a long time, you may be able to achieve your goals without a rise in your mortgage payment.
Do you hold other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have built up some home equity, paying toward other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) could be able to save you a chunk of money every month.
Paying it off Sooner
Do you plan to build up equity quicker, and pay off your mortgage sooner? In that case, you'll want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. You will be paying less interest and increasing your home equity faster, although your monthly payments will likely be bigger than you were paying. On the other hand, if your current longer term mortgage loan has a low balance remaining, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you figure out your options and the many benefits in refinancing, please contact us at 713-370-LOAN(5626) . We are here for you.