Houston Refinance
Refinancing in Houston area
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Houston Refinance 101
Dec 11th
Refinancing 101
What is refinancing?
Refinancing applies to your original mortgage loan when you are replacing it with a new mortgage loan. Refinancing your mortgage can give you more options such as monthly payments, changing the term of the loan terms as well as rates. When you refinance your mortgage loan there are certain pros and cons that you need to be aware of.
Why refinance your mortgage loan?
Refinancing your loan, depending on the comparisons between original loan and the new loan, you can have lower monthly payments, short or longer terms and lower interest rates. Depending on the market mortgage interest rates, it would be wise to refinance because it would save you money. Here are the T0p 5 reasons to refinance.
How do I find out if I need to refinance?
Generally when to refinance depends on measuring the costs and savings of refinancing. The cost of refinancing is usually 2%-6% of your loan amount. If you can save more than 6% of your loan amount by adjusting the length of the loan terms and lowering interest rates, you will benefit from refinancing. However, there are other factors to consider besides loan terms and interest rates. Sometimes there are penalties and fees that would be involved in switching the loan. Make sure you read the terms and conditions of your current loan and the new loan you are considering.
5 Reasons to Refinance Your Mortgage
Nov 2nd
With the current economic conditions, everyone’s wallets are very tight. The upside to this economic downturn can be found in your mortgage payments to help improve your cash flow. Here are the five reasons to refinance your mortgage.
- Interest rates are currently at an all-time low, but when the economy starts picking up again, which it will, interest rates will continue to rise. So the longer you wait, the higher the interest rates will get. The lower your interest rate, the more cash you will have in your hands.
- With interest rates being this low, its a good idea to change your loan program. For those who has ARM(Adjustable Rate Mortgage), you should probably switch to FRM(Fixed Rate Mortgage) because it is highly unlikely that mortgage rates will be as low as it is today.
- With lower interest rates, you will have lower monthly payments. If you can maintain the same monthly payment, with a lower interest rate, you will be able to build equity faster.
- Refinancing your mortgage term from 30 year loan to 15 year loan might also be more affordable with lower interest rates. The lower your mortgage term, the faster you can pay off your mortgage.
- Your equity will continue to rise in a much faster rate, this will allow you to pay off your child’s college tuition, pay off credit card or buy yourself a nice vacation home you’ve always wanted.
