Which Refinancing Loan Program is Right for You?
There aren't as many loan options as there are borrowers, but sometimes it feels like it! We can help you choose the loan program that will fit your situation the best. Contact us at 562 320-0510 to get started. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are achieving lower mortgage payments and an improved rate your main reasons for refinancing? If so, getting a low, fixed-rate loan may be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even as interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you expect to stay in your home for about five more years, a fixed rate loan may be a particulary good fit for you. However, an ARM with a initial low payment could be a smarter way to reduce your mortgage payments if you plan on moving in the next few years.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? Maybe you need to pay for home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. Then you will need to qualify for a loan above the remaining balance of your present mortgage loan.In this case, you'll want You might not have an increase in your monthly payemnt, however, if you've had your current mortgage loan for a while, and/or your interest rate is high.
Do you have other debt, perhaps with high interest, that you need to consolidate? If you hold some debt with higher interest (such as credit cards or car loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have the equity built up to make it work.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while building up your equity faster? If this is your wish, the refinance loan can change you to a mortgage program with a shorter term, such as a 15 year loan. Your mortgage payments will likely be higher than with your long-term loan, but the pay-off is: that you will pay quite a bit less interest and will build up equity more quickly. However, if you've had your current 30 year loan for a long time and the remaining balance is relatively low, you may be do this without increasing your monthly payment — it's even possible to save! To help you understand your options and the many benefits in refinancing, please call us at 562 320-0510. We are here for you.
Want to know more about refinancing your home? Call us: 562 320-0510.