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refinance loans texas home mortgage

Refinance home mortgages loans solutions information conventional adjustable home equity loans finance information san antonio houston austin dallas home loan no nonsense home re-financing mortgage loans.

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You may refinance your present mortgage for any reason. Better rate terms or cash back from equity. Currently Texas law allows you to refinance 100% of your present mortgage, or if you wish to receive cash from the equity in your home, you may get up to 80% of the current appraised value. Example: Property worth 100,000 equity refinance of 80,000. Owed 60,000 cash back = 20,000. Another reason for refinance, where the property market value has risen this makes a option of keeping equity liquid and your money working for you.

If you are thinking about refinancing your mortgage, you might want to consider other types of mortgages. For example, you might want a mortgage with a shorter term. If you currently have a 30-year fixed-rate loan, you might consider refinancing to a 10-, 15-, or 20-year loan which will lower the total amount of interest you will pay over the life of the loan and will let you to pay off your loan faster. you also might want to switch an adjustable rate mortgage with high or no limits on interest rate increases to a fixed-rate mortgage which provides the predictability of knowing exactly what your mortgage payment will be for the life of the loan.

It is important to determine the best type of a new mortgage. The type of mortgage loan you select will depend on how long you expect to continue living in your current home and the amount of monthly payment you can comfortably afford.

If you don't plan to stay in your house for at least 5 to 7 years, it will be reasonable to consider an adjustable loan  Adjustable Rate Mortgage, Balloon Mortgage or "Two-Step mortgage" Two-Step Mortgage. An Adjustable Rate Mortgage traditionally offers lower interest rates during the early years of the loan than fixed-rate loans. A Two-Step Mortgage will give you a lower interest rate than a 30-year mortgage for the first five or seven years. A Balloon Mortgage offers lower interest rates for shorter term financing, usually five or seven years.

You can start to consider 15 or 30 year fixed rate mortgages if you plan to stay in your home for more than seven years.

The refinancing process will remind you of what you went through in obtaining the original mortgage. In reality, refinancing a mortgage is simply taking out a new mortgage. You will encounter many of the same procedures and the same types of costs the second time around.

To figure out whether it pays to refinance, you must calculate the total refinancing costs and answer the question that may help you decide: How many months will it take to break-even? You should consider re-financing if you plan to stay in your home for more than the time it takes to break-even.

Here's an example. If the total refinancing costs are $2,000, and your monthly savings on the new loan are $100, it will take you 2000/100=20 months to break-even. If you don't plan on staying in the house that long, it won't pay to refinance.

A general rule states that if rates drop by two percentage points, that was the time to refinance. However, it could pay off to refinance with only a one percent lower rate if you can afford the refinancing costs.

You can refinance with no points and no fees whatever. Some lenders offer a zero point/zero fee loan which means that you do not have to pay most of the fees generally required, however, your monthly payments may be somewhat higher (lenders generally will charge a higher interest rate for this type of loan). The zero point/zero fee loan eliminates the need to do a break-even analysis since there is no up-front expense that needs to be recovered.

The greatest deterrent to refinancing could be a prepayment penalty on your present mortgage . The practice of charging money for an early pay-off of the existing mortgage loan varies by state, type of lender, and type of loan. Laws in many states prohibit or limit mortgage prepayment penalties. The mortgage documents for your existing loan will state if there is a penalty for prepayment.

Apply online for your free NO OBLIGATION loan quote today! Or call us at 1-210-344-2870 to apply by phone.

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Loan documents needed are the loan application, credit report, title papers, proof of insurance, bank statements and appraisal on cash out loans.

If you are a homeowner who was lucky enough to buy when mortgage rates were low, you may have no interest in refinancing your present loan. But perhaps you bought your home when rates were higher. Or perhaps you have an adjustable rate loan and would like to obtain different terms.

Should you refinance? This  will answer some questions that may help you decide. If you do refinance, the process will remind you of what you went through in obtaining the original mortgage. That's because, in reality, refinancing a mortgage is simply taking out a new mortgage. You will encounter many of the same procedures-and the same types of costs-the second time around.

Would Refinancing Be Worth It ?

Refinancing can be worth while, but it does not make good financial sense for everyone. A general rule is that refinancing becomes worth your while if the current interest rate on your mortgage is at least two percentage points higher than the prevailing market rate. this figure is generally accepted as the safe margin when balancing the costs of refinancing a mortgage against the savings.

There are other considerations, too, such as how long you plan to stay in the house. Most sources say that it takes at least three years to realize fully the savings from a lower interest rate, given the costs of the refinancing. (Depending on your loan amount and the particular circumstances, however, you might choose to refinance a loan that is only 1.5 percentage points higher then the current rate. You may even find you could recoup the refinancing costs in a shorter time.)

Refinancing can be a good idea for homeowners who:

  1. Want to get out of a high interest rate loan to take advantage of lower rates. This is a good idea only if you intend to stay in the house long enough to make the additional fees worthwhile.
  2. Have an adjustable rate mortgage (ARM) and want a fixed rate  loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.
  3. Want to convert to an ARM with a lower interest rate or more protective features (such as a better rate and payment caps) than the ARM they currently have.
  4. Want to build up equity more quickly by converting to a loan with  shorter term.
  5. Want to draw on the equity built up in their house to get cash for a major purchase or for their children's education.

If you decide that a refinancing is not worth the costs, ask  us whether you may be able to  refinance.

Should You Refinance Your ARM?

In deciding whether to refinance an ARM you should consider these questions:

  1. Is the next interest rate adjustment on your existing loan likely to increase your monthly payments substantially ? Will the new interest rate be two or three percentage points higher than the prevailing rates being offered for either fixed rate loans or other ARM s
  2. If the current mortgage sets a cap on your monthly payments, are those payments large enough to pay off your loan by the end of the original term? Will refinancing a new ARM or a fixed rate enable you to pay your loan in full by the end of the term?

What Are The Costs of Refinancing?

The fees described below are the charges that you most likely to encounter in a refinancing.

Application Fees. This charge by lender covers the initial costs of processing you loan request.

Title Search and Title Insurance This charge will cover the cost of examining the public record to confirm ownership of the real estate. It also covers the cost of a policy, usually issued by a title insurance company, that insures the policy holder in a specific amount for any loss caused by discrepancies in the title to the property.

Be sure to ask the company carrying the present policy if it can re-issue your policy at a re-issue rate. You could save up to 70 percent of what it would cost you for a new policy.

Lender's Attorney's Review Fees The lender will usually charge you for fees paid to the lawyer or company that conducts the closing for the lender. Settlements are conducted by lending institutions, title insurance companies, escrow companies, real estate brokers, and attorneys for the buyer and seller. In most situations, the person conducting the settlement is providing a service to the lender.

Loan Origination Fees and Discount Points.

The origination fee is charged for the lender's work in evaluating and preparing your mortgage loan. Discount points are prepaid finance charges imposed by the lender at closing to increase the lender's yield beyond the stated interest rate on the mortgage note. One point equals one percent  of the loan amount. For example, one point on a $75,000 loan would be $750. In some cases, the points you pay can be financed by adding them to the loan amount. The total number of points a lender charges will depend on market conditions and the interest rate to be charged.

Appraisal Fee. This fee pays for an appraisal which is a supportable and defensible estimate or opinion of the value of the property.

Prepayment Penalty. A prepayment penalty on your present mortgage could be the greatest determent to refinancing. The practice of charging money for an early pay-off of the existing mortgage loan varies be state, type of lender, and type of loan. Prepayment penalties are forbidden on various loan including loan from federally chartered credit unions, FHA and VA loans, and some other home-purchase loans. The mortgage documents for your existing loan will state if there is a penalty for prepayment. In some loans, you may be charged interest for the full month in which your prepay your loan.

Miscellaneous Depending on the type of loan you have and other factors, another major expense you might face is the fee for a VA loan guarantee, FHA mortgage insurance, or private mortgage insurance. There are a few other closing costs in addition to these.

Apply online for your free NO OBLIGATION loan quote today! Or call us at 1-210-344-2870 to apply by phone.

refinance loans texas home mortgage

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