Which Refinancing Option is Right for You?
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When you are overwhelmed with so many choices, it may seem as if there are even more loan programs than borrowers! Contact us at (512) 537-8000 and we will match you with the refinance loan program that is ideal for your needs. There are several things to have in mind as you consider the choices.
Lowering Your Payments
Are achieving reduced monthly payments and a lower rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan may be a good choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. If you plan to live in your home for about five more years, a fixed rate mortgage may be a particularly good fit for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Are you planning to cash out some of your equity in your refinance? It could be you need to make home improvements, pay your child's college tuition bill, or go on a dream vacation. In this case, you want to find a loan higher than the balance remaining of your existing mortgage.So you'll want However, if your interest rate is high now and you've had it for quite a few years, you could be able to accomplish your goals without making your mortgage payments higher.
Perhaps you want to pull out some of the equity (cash out) to use toward other debt. If you own any debt with steep interest (such as credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Building up Equity Faster
Do you plan to build up equity quicker, and pay off your mortgage sooner? If this is your hope, your refinance loan can change you to a mortgage loan program with a shorter term, for example: a 15 year loan. Even though your monthly payment amount will likely be more, you can save on interest; so your home equity will build up faster. Conversely, if your current long-term mortgage loan has a low balance remaining, and was closed a number of years ago, you may be able to make the move without paying more each month. To help you figure out your options and the many benefits in refinancing, please call us at (512) 537-8000. We are here for you.
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