Selecting a Refinancing Loan
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Although it may seem like it at times, there aren't as many loan options as there are borrowers! Contact us at (512) 577-6222 and we will help you qualify for the best refinance loan to fit your needs. What do you hope to achieve with refinancing? Keeping in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are getting lower payments and a better rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which 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 life of your mortgage. If you expect to live in your home for at least five more years, a fixed-rate loan may be an especially good fit for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower monthly payments.
Is your refinance goal mainly to pull out some of your home equity for an infusion of cash? It could be you're planning a special vacation; you need to pay college tuition for your child; or you are updating your kitchen. In this case, you may qualify for a loan that is 80% of the market value of your home. As long as your current balance is significantly lower than 80% of the market value of your home, you could benefit from a cash-out. Call us for more details (512)-577-6222.
Consolidating Your Debt
Perhaps you hope to pull out some equity in your home (cash-out) to use toward other debt. If you have built up some equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a chunk of money every month.
Paying it off Faster
Are you dreaming of paying your loan off more quickly, while building up your home equity faster? You should consider refinancing with a short-term loan, often a 15-year mortgage. Although your monthly payment amount will usually be more, you can save on interest; so your home equity will build up faster. However, if you have held your current 30 year mortgage for a number of years and the loan balance is relatively low, you could do this without increasing your monthly payment — it's even possible to save! To help you figure out your options and the numerous benefits in refinancing, please contact us at (512) 577-6222. We are here to help you reach your goals!
Want to know more about refinancing your home? Give us a call at (512) 577-6222.