New Braunfels is unique among Texan cities. It was settled by German cotton farmers, and a lot of German Texans still live there, and they are proud of both heritages. New Braunfels celebrates its German heritage every November with a great Wurstfest.
People come to New Braunfels for a lot of reasons, and one is to play in the water. Tubing down the Guadalupe or Comal Rivers is a local pastime, and the Schlitterbahn Waterpark may be the best waterpark in the country.
People stay and live in New Braunfels for a lot of reasons. It is ideally located between Austin and San Antonio, has little unemployment and a low cost of living. It is known as a friendly city. The weather is hot, but more stable than in other Texan cities. As one resident says, it is south of the major tornado areas and north of the hurricanes.
Because the cost of housing is very affordable, most New Braunfels residents are homeowners. You may be one of those homeowners and you are interested in learning about refinancing or home equity loans. Or maybe you are planning to buy a home there. In any case, you want to know more about home loans. Here is a brief explanation of home mortgages, refinancing and home equity loans.
Home Mortgage
Mortgages include the principal (amount of the loan), interest (what the lender charges to let you use his money) and term (how long it takes to pay off the loan). You can adjust each part to get a loan that is right for you:
Refinancing
Refinancing involves getting a new mortgage on your home and paying off the old one. You go through the same process as you would for any mortgage.
When you refinance, you have two options: You can refinance just the amount you owe and negotiate a lower interest rate or more favorable loan terms. This will either reduce your monthly payments or reduce the term of your loan.
Another option is a cash-out refinance. Here, you borrow more than enough to pay off the mortgage, cashing out some or all of your equity. The interest rate is lower than if you borrowed the extra money some other way, and it is usually tax deductible.
Home Equity Loans
A home equity loan is also called a second mortgage. It is a loan using your equity in the home as collateral. Just like with a cash-out refinance, you can use the money any way you want, and the interest is usually tax deductible. Your old mortgage is unaffected, though, and you will have two house payments.
Getting the right home loan involves finding the right lender. Fill out the form on this page, and we will help you with that.
