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Stonebriar Mortgage

Stonebriar Mortgage

Should You Refinance Your Mortgage in Dallas?

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Should You Refinance Your Mortgage in Dallas?

As a Dallas area resident, you are hopefully paying competitive mortgage rates. But depending on when you took out your mortgage and what your borrower profile looked like at the time, you might be paying a lot more than your neighbors are right now.

If so, you might be wondering whether it is worth it to refinance in Dallas. Could doing so be your key to unlocking a lower mortgage rate?

Refinancing a mortgage has advantages and disadvantages. To figure out whether refinancing makes sense in your situation, you will need to determine whether the potential pros outweigh the potential cons.

Refinancing Carries a Cost

When you refinance your mortgage, there are closing costs. Typically, closing costs for a refinance range between 2% and 5% of your mortgage principal.

So, the question is whether the savings from refinancing will outpace that cost or not.

Refinancing in TX Can Offer Many Potential Benefits

Here are some of the ways in which refinancing your mortgage in Dallas or elsewhere in Texas could save you money:

  • You may qualify for a lower interest rate on your mortgage if rates have dropped since you took out your loan or if your borrower profile has improved.
  • If you pay for mortgage insurance now and qualify for a loan without a mortgage insurance requirement through refinancing, you could save money every month.
  • Has your adjustable mortgage rate been ballooning? Refinancing to a fixed mortgage rate could reduce your payments and keep them low in the future.
  • If it is possible to pay off your loan early, refinancing to get rid of prepayment penalties could end up saving you money, especially when you take into account the lower amount of interest you will end up paying in total.
  • If you have a number of high interest debts, you might be able to consolidate them into a lower interest mortgage.
  • Struggling to pay your other monthly bills and keep up with your mortgage? Refinancing to a longer mortgage term could be what you need to do in order to stay afloat each month and avoid high interest debt.

Try Our Refinance Analysis Tool

In our Resources section, you will find our Refinance Analysis tool.

With this tool, you can enter your zip code and answer a few questions to find out what your new low mortgage rate and payment amount could be if you qualify for a refinance today.

Call Stonebriar Mortgage Find Out How Much Refinancing Could Save You on Your Dallas Mortgage Now

Another way to find out whether you could benefit from a refinance is to come in for a consultation. Our mortgage experts can run the numbers for you and let you know exactly how much you could save over your loan term with a home loan refinance in Dallas or elsewhere in Texas.

If you are ready to start saving, please call us now at (214) 669-3307 to schedule your consultation.

What Are Portfolio Loans?

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When a bank decides not to sell a loan on the market, they are keeping it in their portfolio. This is known as a portfolio loan. Banks choose to do this so that they can profit from all the interest as payments are applied. Portfolio loans may also give the company more control over the terms of their loan program. This may be helpful if you cannot qualify for a more conventional source of financing. Read on to learn more about why you want to take advantage of this program. Contact Stonebriar Mortgage for your home purchase needs in the Dallas, Texas or California market.

The Portfolio Loan Application

Check with the bank who provides the loan for their specific application process. Many banks use automated underwriting software. If you lack the traditional documents to meet the automated standards, then a manual underwriting process may be best. Show your worth as a borrower through business assets or investments. Many small banks operate portfolio loan programs to attract an entrepreneurial or investment-savvy borrower into their business. For this reason, they may offer you better rates and loan terms, so that you stay with their company and open other accounts.

Benefits of Using a Portfolio Loan

Obviously, this loan could benefit you if you cannot qualify for a traditional loan program. Many people also appreciate the more personalized customer service they get from working with a smaller bank or credit union.  In a larger bank, you may deal with an array of people over the life of the loan, and struggle to build trust.

Many investors are attracted to portfolio loans for fix and flip properties. The manual underwriting standards may adapt to their unique needs. For example, if you have a high debt-to-income ratio or an unusual credit history, the lender can still work with you.

Risks of Using a Portfolio Loan

Some portfolio loans will carry additional risk, especially if you already carry a lot of debt. The manual underwriting process could subject you to increased interest rates and fees. In addition, a higher down payment may be asked. You can always explore refinancing the loan later if you are not getting your preferred terms. Read the bank agreements closely, since many customize policies. Note if there are any sections where you are being asked to waive certain consumer rights. You should also note any penalties for taking actions such as paying off the loan early, selling at a certain point, refinancing, or more.

Whatever your decision, the friendly staff at Stonebriar Mortgage are here to help. We can discuss your interests and guide you in the portfolio loan process. We are here to support Dallas, Texas and California homebuyers.