Refinancing: Which Loan Program is for You?
There aren't as many refinance loan programs as there are applicants, but it seems like it sometimes! Call us at 562 320-0510 and we can match you with the loan program that is ideal for your needs. What are your reasons for your refinance loan? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are getting reduced monthly payments and a better rate your main refinance goals? In that case, applying for a low, fixed-rate loan might be a good choice for you. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the interest rate varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you plan to stay in your home for at least five more years, a loan with a fixed rate may be an especially good choice for you. However, an ARM with a initial low payment could be a smarter way to lower your monthly payments if you plan on moving in the next few years.
Is your refinance goal primarily to pull out some home equity for an infusion of cash? Maybe you're dreaming of a cruise; you need to pay college tuition for your child; or you are planning some home improvements. In this case, you will need to get a loan for more than the remaining balance of your present mortgage.Then you will want You might not have an increase in your monthly payemnt, however, if you've had your current mortgage for a number of years, and/or your interest rate is high.
Consolidating Your Debt
Do you hold other debt, perhaps with high interest, that you need to consolidate? If you have some higher interest debts (like credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have enough equity.
Switching to a Shorter Term Loan
Do you need to build up home equity more quickly, and have your mortgage paid off more quickly? You should consider refinancing to a short-term loan, like a 15-year mortgage. You will be paying less interest and increasing your equity more quickly, although your payments will generally be more than you were paying. Conversely, if your existing long-term loan has a small remaining balance, and was closed a while ago, you could be able to make the change without paying more each month. To help you figure out your options and the many benefits in refinancing, please contact us at 562 320-0510. We are here for you.
Want to know more about refinancing your home? Give us a call: 562 320-0510.