Which Refinancing Loan Program is Right for You?
There are a huge number of refinancing programs available to borrowers. Call us at 562 320-0510 and we will match you with the loan program that is best for you. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan may be a good option for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage in which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your loan, even as interest rates rise. If you are planning to stay in your home for about five more years, a fixed-rate loan may be a particulary good choice for you. On the other hand, if you do see yourself moving within the next few years, an ARM with a low initial rate might be the best way to reduce your monthly payments.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity with your refinance? Perhaps you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you need to qualify for a loan for more than the remaining balance on your current mortgage loan.So you'll want to find a loan program for a bigger amount than the balance remaining on your existing mortgage. You may not increase your monthly payemnt, however, if you have had your existing mortgage loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Maybe you'd like to cash out some equity in your home (cash out) to put toward other debt. If you have enough equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) could help save you a chunk of cash each month.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while beefing up your home equity quicker? If this is your hope, the refinance loan can move you to a mortgage loan program with a short, like a 15 year loan. Even though your monthly payments will likely be increased, you will be paying less interest; so your equity amount will rise up faster. But, you could be able to make the change without much increase in your monthly mortgage payment if your long term mortgage loan was closed a while ago, and the remaining balance is low enough. You may even make it lower! To help you determine your options and the many benefits in refinancing, please contact us at 562 320-0510. We are here to help you reach your goals!
Want to know more about refinancing? Call us at 562 320-0510.