Thinking about refinancing your Home Loan?
Interest Rates are still near historic lows!
If you’ve purchased or refinanced a home in the last decade, you should be asking yourself “Should I refinance my home loan?”
You’ve heard people talk about it, “I was able to lock in the lowest rate.” It’s almost become a contest among friends and co-workers. For good reason. Interest rates can find new lows on any given day as the market moves; through these movements, homeowners could possibly save hundreds of dollars per month by deciding to refinance.
Is a refinance right for everyone? Of course not. There are many factors to consider to find out if it’s even worthwhile. With the Dallas Mortgage Planners team at First Choice Loan Services Inc., we offer a mortgage review and loan analysis to find out what options are out there and how each loan would perform in direct comparison with your current home loan. Through this analysis we are able to provide custom tailored solutions that fit into more than just your monthly payment. We consider the total cost savings over the short-term that you plan to keep your home as well as the long-term goals that you have in place for your future.
If this mortgage review and analysis would help you decide that it’s the right to refinance, we would be happy to help you. At the very least, you can walk away knowing that you are set in a good place with your home financing. Start my mortgage review
There are many different reasons homeowners decide to refinance. That’s why the Dallas Mortgage Planners team at First Choice Loan Services Inc. has a professional staff of loan originators that are experienced with all types of home loan refinance solutions. Asking yourself the question, “Should I refinance my home loan?” Here are a few of the different reasons and motivations to refinance:
- Rate/Term Refinance – a rate/term refinance is available for homeowners that would like to lower their monthly payments by reducing their interest rate. Some homeowners choose to also change the term of their loan while getting a lower rate. For instance, a homeowner may have decided that a 15 yr. fixed was the right option for them at one point, but now they are able to move to the flexibility of a 30 yr. term, freeing up monthly cash flow to meet other financial goals. A rate/term refinance would also be a great solution for someone wanting to go from an ARM (Adjustable Rate Mortgage) to a low fixed rate.
- Cash-Out Refinance – a cash-out loan is a great tool for homeowners with equity established in their home. The equity could be from paying down the existing loan balance or through property appreciation. The cash-out refinance gives a homeowner to access this equity by taking a “lump sum” loan against it. The cash proceeds can be utilized for home improvements, investment/savings, children’s education, retirement… The State of Texas has established it’s owns regulations for these types of loans, Texas (a)6, and limits homeowners access to a max of 80% of the home’s value.
- Debt Consolidation Refinance – a debt consolidation loan is available for a homeowner that has accrued debts other than their home loan, such as credit cards, auto loans, student loans… Most of these consumer debts carry a much higher interest rate (19% is common) than current mortgage rates. Consolidating these high rate debts to a low fixed rate can free up the much needed cash flow to become debt free or meet your goals.
Based on the current economy and market dynamics, it’s tough to imagine that things could get much crazier. As the dust settles and the confidence comes back to the markets, interest rates will go higher. It’s inevitable. They may not go higher today or next month. Who knows, maybe next year, but it will happen. Take this rare opportunity of interest rates being at incredible lows and see if a refinance is right for you.
Learn more about Conventional Home Loans for your home refinance.