Which Refinancing Program is Best for You?

Dallas homeowners as well as homeowners all over Texas are looking to use the equity in their homes as an asset. Many homeowners are looking to get a lower monthly mortgage rate or to pay off other higher interest debts. Sublime Financial can help you choose the loan program that fits your situation the best.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan might be a good option for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. This can be particularly a wise idea if you don't think you'll be selling your home within the next five years or so. On the other hand, if you do see yourself moving within several years, an ARM mortgage with a low initial rate may be the best way to bring down your monthly payments.

Get Cash Out Of Equity

Are you hoping to cash out some of your equity with your refinance? Perhaps you need to pay for home improvements, pay your child's college tuition bill, or take a cruise. In this case, you will need to apply for a loan above the remaining balance on your current mortgage.So you want to qualify for a loan for a higher number than the remaining balance on your current mortgage loan. If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without making your mortgage payment bigger.

Consolidating Your Debt

Maybe you'd like to pull out a portion of the home equity (cash out) to put toward other debt. If you have enough home equity, paying toward other debt with higher interest that your home loan (credit cards or home equity loans, for example) might be able to save you a lot of cash every month.

Building Up Equity Faster

Are you dreaming of paying off your loan more quickly, while building up your equity quicker? If this is your hope, the refinance loan can change you to a loan program with a shorter term, for example: a 15 year loan. Although your mortgage payment amount will likely be more, you can save on interest; so your equity amount will build up faster. But, you might be able to switch without a bigger monthly payment if your longer term mortgage loan was closed a while ago, and the balance remaining is low enough. You may even pay less! To help you figure out your options and the multiple benefits in refinancing, please call us at 214-396-3650. Sublime Financial is here for you.