Which Refinancing Option is Right for You?
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than applicants! We can guide you to select the refinance program that can fit your financial situation the best. Call us at 562 320-0510 to get things started. There are some general questions to ask yourself as you look at your choices.
Lowering Your Payments
Are achieving reduced payments and a lower rate your main refinance goals? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage loan, even when interest rates rise. A fixed-rate mortgage can be particularly a good idea if you don't think you will move within the next five years or so. On the other hand, if you can see yourself selling your home within several years, an adjustable rate mortgage with a low initial rate might be the best way to reduce your monthly payment.
Getting Out some Cash
Are you wanting to cash out some of your home equity with your refinance? Maybe you're planning a special vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you'll want to get a loan above the remaining balance of your existing mortgage loan.With this goal, you want You might not have an increase in your mortgage payemnt, though, if you have had your existing loan for a while, and/or your interest rate is high.
Perhaps you'd like to cash out some of the equity (cash out) to put toward other debt. If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars per month.
Paying it off Sooner
Are you dreaming of paying your loan off sooner, while beefing up your home equity more quickly? Then, you need to look into refinancing to a short term mortgage - like a fifteen-year mortgage loan. Your monthly payments will probably be more than they were with a longer term mortgage loan, but the pay-off is: you will pay quite a bit less interest and can build up equity quicker. But, you could be able to switch without much increase in your monthly payment if your longer term mortgage was closed a while back, and the remaining balance is low enough. You could even pay less! To help you determine your options and the multiple benefits in refinancing, please contact us at 562 320-0510. We will help you reach your goals!
Want to know more about refinancing your home? Call us: 562 320-0510.