Refinancing: Which Option is for You?

There are not as many refinance loan programs as there are borrowers, but it feels like it at times! Call us at 817-878-4220 and we can work with you to qualify you for the best refinance loan for your financial needs. There are several things to bear in mind while you review the choices.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right choice for you. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — in which the interest rate can vary. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the mortgage loan, even as interest rates rise. If you are planning to live in your home for at least five more years, a fixed-rate loan may be an especially good option for you. However, an ARM with a low intitial payment may be a wiser way to reduce your mortgage payments if you expect to move in the next few years.

Refinancing to Cash Out

Are you planning to cash out some of your home equity in your refinance? It could be you need to update your kitchen, pay your child's college tuition bill, or take a cruise. Then you'll want to find a loan above the remaining balance of your current mortgage.In this case, you'll want However, if your mortgage rate is currently high and you've held it for quite a few years, you could be able to reach your goals without making your monthly payments rise.

Consolidating Your Debt

Perhaps you want to pull out a portion of the home equity (cash out) to use toward other debt. If you hold some debt with high interest (such as credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have the home equity built up to make it work.

Getting a Shorter Term Loan

Do you hope to build up equity quicker, and pay off your mortgage more quickly? If this is your hope, your refinance can change you to a mortgage loan program with a short, like a 15 year loan. You will be paying less interest and growing your home equity more quickly, although your mortgage payments will generally be more than they were. On the other hand, if your current long-term mortgage has a low balance remaining, and was closed a number of years ago, you may be able to make the change without paying more each month. To help you understand your options and the many benefits in refinancing, please contact us at 817-878-4220. We will help you reach your goals!

Curious about refinancing? Give us a call at 817-878-4220.