When you secure a mortgage, you receive a set of terms that ultimately affect what you pay each month and for how long you will owe on your loan. Sometimes, the best terms that are available to you are not going to be ideal in the long run. In this situation, there is something you can do—through refinancing, you can use the availability of better interest rates and your home’s equity to establish a new loan to replace the one you have been paying off. This can affect how much you need to budget in terms of your monthly expenses, what you owe, and even how long you will need to continue paying. There is even an option to use a cash out refinancing to take immediate funds that you can use to your benefit. FHL Texas is happy to consult with you on when to make a move on refinancing and what kind of terms you can secure. We have experience with this and many other matters related to homebuying, refinancing, reverse mortgages, and more.
Are You Ready To Change Your Mortgage Terms?
There are different reasons why people start to look into refinancing. For some, it is a chance to use falling interest rates to their benefit. Others may use it to exit an adjustable rate mortgage (ARM) and secure a loan that comes with a fixed rate. If you have more cash on hand and want to use that to your advantage, you can look at refinancing and putting a larger investment into your new mortgage to lower your loan-to-value (LTR) ratio. Ultimately, you know your future plans and finances, and you can have different reasons for why you are considering this change. Our goal is to help you understand what refinancing involves and how it can help you, which can help you make the right decision for the long term.
Refinancing Can Help You Take Advantage Of Better Interest Rates And Your Home Equity
Timing can play a significant part in determining when you should refinance. When interest rates dip below what they were at the time of your home purchase, you can find yourself eligible for better terms on a loan. If you are looking to make a home purchase at a time when interest rates are higher, having the option to refinance later can make it easier to commit to terms today. With that said, this is not all that can affect what you are able to receive. Refinancing also takes your home’s equity into account, which you can use to receive a more advantageous loan.
Exploring Traditional Or Cash Out Refinancing
Through traditional refinancing, you arrange a new loan to replace your current mortgage, one that comes with more appealing terms for you. You can modify both the rate and term of your mortgage through this option. Lower interest rates can help you save money over time. If you want to ease your monthly burden, you can look at ways to lower payments. The option to lower payments can come with longer loan terms, which is something to consider as you move forward with your plans.
Through a cash out refinancing, your new mortgage can come with the receipt of a set sum of cash at the time it is awarded. Based on what you take and what your terms are, this can ultimately mean that you owe more on your home. However, by pursuing cash out refinancing, you have the means to secure funds that you can use for different investments or outstanding costs. You can even apply what you receive to the restoration and improvement of your home to help raise its value over time!
More People Can Qualify For Refinancing Than You Might Expect
Refinancing is more than just a way to capitalize on better interest rates, and it can be more than just a way to lower your monthly payments. Whether you are looking to avoid difficult loan terms that begin later or you could use the immediate access to money that this path offers, you can find you are a good candidate. This is true even if you are relatively new to home ownership. In fact, someone with a relatively new mortgage can still look into this option as a way to secure better terms or earn the cash needed to upgrade a home and make sure it provides the right support for you over time.
We Can Discuss A No-Out-Of-Pocket-Cost Refinance
While it can be exciting to consider refinancing, it can also be something that makes people wary. One concern is that the closing costs associated that come with securing your new terms will rob you of benefits. Keep in mind that over the life of your loan, you can more than pay back what you invest in refinancing. However, we understand that a time when interest rates are falling may coincide with a time when your own finances are limited. In this situation, you can look into no-out-of-pocket-cost refinancing. Because this is an option, you can still move forward with plans even if you have less financial flexibility to pursue it.
FHL Texas Can Help You With Refinancing!
FHL Texas can provide help with different aspects of purchasing and refinancing property. For those who want to see what refinancing can do for them, we can provide important guidance, and we can help you move forward when you are ready to set new terms for your mortgage. Whether you are looking for long-term savings or hope to use this as an opportunity to receive a sum of cash at closing, we can offer guidance, information, and assistance throughout the refinancing process. If you would like to find out more, please reach out to FHL Texas today at 1-800-LEND (5363).