What Are Your Refinancing Options?

RefinancingRefinancing a mortgage loan can be a helpful way to save money over a long period of time. If you plan on owning a home for a long time, there is a good chance that the initial terms of your mortgage — when you first got it — might not remain ideal over the years. If interest rates drop or you increase your income to where you can pay off the loan quicker than originally planned, refinancing your loan could be advantageous. In today’s blog, Family Home Loan Texas discusses the different refinancing options that you can choose.

What Exactly Is It?

Before delving into the different types, let’s have a refresher. Refinancing is when you revise and update the terms of your mortgage. When you decide to go this route, it is typically to lower your fixed interest rate, change the duration of your mortgage, or switch from a fixed interest rate to an adjustable-rate mortgage. Overall, you want to make sure you will be saving money in the long run.


This is an option where you take out a new home loan for a larger amount than what you owe on your original mortgage. You then receive the difference between the two loan amounts in cash that you can spend however you please. This is not an additional loan. Rather, it replaces your original one and could end up requiring a larger monthly payment. This is a good option if you have large or unforeseen expenses that you need to cover. 

Rate-And-Term Refinance

This is one of the most common options, and it consists of you changing the interest rates and loan terms of your existing mortgage. This can be a great option when interest rates are lower than they were when you first took out the home loan, and you now have the opportunity to take advantage of better terms with your lender. If you do go this route, the size of your mortgage loan stays the same, but you can end up with lower monthly payments, or you could be able to pay it down faster than you had initially anticipated. Overall, the goal of this option is to pay less in the long run, after factoring in new closing costs.

Contact Us To Learn More About Refinancing

If refinancing your mortgage leads to you paying less over the course of the loan, you should definitely consider the option. Family Home Loan Texas was founded by loan originator and long-time mortgage professional Rob Bramer. Rob has helped clients secure the loans they need both locally and nationally and can help you get the loan you need to live life on your terms. Call 1-800-990-LEND (5363)  to speak with Rob about your home loan needs, including refinancing and reverse mortgage loans.