Selecting a Refinancing Loan

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Even though it seems like it at times, there are not as many refinance options as there are borrowers! Call us at 915-691-9072 and we will match you with the refinance program that fits you best. What are your goals for your refinance loan? Keeping in mind the following will help you narrow your choices.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the mortgage, even if interest rates rise. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great option. However, an ARM with a initial low payment could be a wiser way to lower your monthly payments if you see yourself moving in the next few years. By refinancing your existing loan, you may wind up paying more in finance charges over the life of the loan.

Cashing Out

Is "cashing out" your primary purpose for refinancing? Your home needs updating; your daughter has gone to college and needs tuition money; or you are planning a special vacation. With this in mind, you will need to find a loan above the remaining balance of your existing mortgage loan.In that case, you will want to qualify for a loan program for a bigger amount than the remaining balance on your present mortgage loan. If you've had your existing mortgage for a number of years and/or have a mortgage with high interest, you might\could be able to do this without making your mortgage payment higher.

Consolidating Your Debt

Do you hold other debt, maybe with a higher interest rate, that you need to consolidate? If you hold some debt with steep interest (such as credit cards or car loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have the right amount of home equity.

Building up Equity Faster

Are you hoping to fatten up your equity faster, and pay off your mortgage loan sooner? In that case, you want to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage program. Even though your mortgage payments will usually be more, you can be paying less interest; so your equity will build up faster. But, you could be able to switch without a bigger monthly mortgage payment if your longer term mortgage loan was closed a while back, and the balance remaining is somewhat low. You may even make it lower! To help you understand your options and the multiple benefits in refinancing, please call us at 915-691-9072. We are here for you.