Choosing a Refinancing Option

>> What do you hope to achieve with your refinance loan?


Although it may seem like it sometimes, there are not as many loan options as there are applicants! Considering the options below will help you begin your decision process.  Also review our various loan programs to determine the best fit for your needs.

Contact us at (512) 916-9955 and we can help you qualify for the best loan program for your needs

Making Your Payments Lower

Do you want to lower your rate and monthly payments?

If so, getting a lower fixed-rate loan might be a good option for you. Perhaps you are currently in a mortgage loan with a high interest rate, or a loan with which the interest rate varies (an adjustable rate mortgage or ARM). With a fixed rate mortgage, your interest rate stays at a certain low rate for the term of the mortgage, even as interest rates rise. If you are planning to stay in your home for about five more years, a fixed rate loan with lower interest rate may be an especially good option for you. On the other hand, if you expect to move in the near future, an ARM with a low initial rate may be the ideal way to lower your monthly payment.

Cashing Out

Do you want to pull out some of your equity for an infusion of cash?

Your home needs renovating; your son has gone to college and needs tuition; or you are taking your family on a cruise. In this case, you'll want to get a loan higher than the remaining balance of your existing mortgage.Then you will want to find a loan program for a bigger number than the balance remaining on your present mortgage loan. If you've had your existing mortgage for quite a while and/or have a mortgage whose interest rate is high, you might\could be able to do this without making your mortgage payment bigger.

Paying Off Debt

Do you have other debt, with a higher interest rate, that you need to pay off?

If you have the home equity to make it work, paying off other high interest debt (like credit cards, home equity loans, or car loans) may enable you to save hundreds of dollars each month by consolidating your debt into your home mortgage.

Switching to a Shorter Term Loan

Do you wish to grow your home equity faster, and pay off your mortgage sooner?

If so, you may want to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. You will be paying less interest and growing your home equity faster, even though your payments will likely be higher than you have been paying. However, if you've held your current 30-year loan for a number of years and your loan balance is relatively low, you may be able to do this without increasing your monthly payment. 

Removing a Spouse From the Mortgage After Divorce

Do you need to wrap up your finances after a divorce?

After a divorce, your may need to remove your spouse from the mortgage note, so they can qualify for a loan when they are ready to purchase their next home, without the previous mortgage still on their credit.  You will need to be able to qualify for the refinance loan on your own, without your ex-spouse's income.

If you need to pay off your ex-spouse as a result of the divorce, the funds can come from your home equity.  It can be tapped using an owelty lien, instead of a home equity loan, which allows you to borrow more against your home than an equity loan would allow. 

Want to know more about refinancing?  To help you understand your options and the numerous benefits in refinancing, please call us at (512) 916-9955.