Which Refinancing Option is Right for You?
There are an enormous number of refinancing options available to borrowers. We can guide you to locate the loan program that can fit your situation the best. Call us at 562 320-0510 to get things started. There are some general things to have in mind while you review the options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan could be a wise option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage loan, even if interest rates rise. If you are planning to live in your home for about five more years, a fixed rate mortgage may be a particulary good option for you. However, if you do see yourself moving within several years, an ARM mortgage with a small initial rate may be the ideal way to bring down your monthly payments.
Are you hoping to cash out some of your home equity in your refinance? It could be you need to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. So you'll want to find a loan higher than the balance remaining of your present mortgage loan.Then you'll You will be looking for a loan for more than the balance remaining of your existing mortgage in this case. You may not have an increase in your mortgage payemnt, though, if you have had your existing loan for a number of years, and/or your interest rate is high.
Consolidating Your Debt
Do you want to pull out some home equity to consolidate other debt? Yes you can! If you have any higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Do you plan to build up equity more quickly, and pay off your mortgage more quickly? In that case, you'll need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. You will be paying less interest and growing your equity faster, although your monthly payments will likely be more than they were. But, you might be able to switch without much increase in your monthly payment if your long term mortgage was closed a while ago, and the balance remaining is low. You may even pay less! To help you understand your options and the many benefits of refinancing, please call us at 562 320-0510. We are here to help you reach your goals!
Want to know more about refinancing your home? Give us a call at 562 320-0510.