Texas Mortgage
Refinance
Mortgage Refinancing
- Why Refinance your Mortgage?
Want to refinance an existing
high interest Texas mortgage with the lowest Texas mortgage
rates available? Interested in refinancing with
cash out in order to make home improvements? Need
to refinance to consolidate existing loans? We can
help!
When you refinance, you pay off
your existing mortgage with a new one. Most Lenders
require that you have at least ten percent equity
in your home prior to refinancing an existing mortgage.
Usually, if you are planning to maintain ownership
of your property it may make sense to refinance.
Reasons to refinance your
mortgage:
1. Interest rates may be lower
now than when you originally got your mortgage.
If interest rates are 1 percentage point below your
current interest rate you should look into refinancing.
2. Maybe when you originally got
your mortgage you took an adjustable rate mortgage,
and now with mortgage interest rates lower it's
time to switch it to a fixed rate mortgage. Fixed
rate mortgages can reduce your monthly payments
if the interest rates have dropped sufficiently.
3. Perhaps you want to make some
home improvements and need cash out to finance the
changes.
4. Maybe you want to change the
term of your current 30 year mortgage to a 15 year
mortgage at today's low mortgage interest rates.
What is a cash out mortgage
refinance?
A cash out mortgage refinance is
when you get a new mortgage for an amount higher
than the current debt owed on your present mortgage.
With a cash out refinancing you will receive a check
after closing for the amount you have financed above
the amount required to payoff your present mortgage.
Whether to refinance or not depends
on a few factors. Today, the closing costs to refinance
your mortgage will be about the same as those of
your original mortgage. You
need to have an idea how long you plan to stay in
your home. If you don't plan to own your
property long enough to recover the new closing
costs then it won't make good financial sense to
refinance.
If
you refinance your current Texas mortgage and lower your
interest rate by 1% and the refinancing closing
costs are about 1% of the mortgage amount you will
recover your closing costs and be ahead financially
in about 18 months!
