Which Refinancing Option is Right for You?

There are not as many refinance loan options as there are applicants, but it feels like it at times! Call us at (956) 622-4307 and we can work with you to qualify you for the right refinance loan program for your needs. There are several things to keep in mind as you look at the options.

Reducing Your Monthly Payments

Are achieving reduced payments and an improved rate your main refinance goals? In that case, applying for a low, fixed-rate loan may be a good option for you. Maybe you are currently in a mortgage with a high, fixed interest rate, or a mortgage in which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of the mortgage loan, even when interest rates rise. If you are expecting to live in your home for at least five more years, a fixed rate loan 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 lower mortgage payments.

Cashing Out

Is "cashing out" your primary reason for refinancing? Perhaps you're going on a much needed vacation; you have to pay college tuition for your child; or you are planning some home improvements. Then you want to get a loan for more than the balance remaining on your existing mortgage.So you want However, if your interest rate is currently high and you've held it for a long time, you may be able to accomplish your goals without a rise in your mortgage payment.

Consolidating Debt

Do you hold other debt, maybe with a high interest rate, that you'd like to consolidate? If you have a fair amount of home equity, taking care of other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) could help save you a chunk of cash every month.

Paying it off Sooner

Are you dreaming of paying off your loan sooner, while beefing up your equity faster? Then, you need to find out about refinancing to a short term mortgage loan - such as a fifteen-year loan. The payments will probably be more than they were with your long-term mortgage, but the pay-off is: you will pay substantially less interest and will build up equity more quickly. Conversely, if your existing longer term mortgage has a small 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 figure out your options and the numerous benefits of refinancing, please call us at (956) 622-4307. We are here for you.