Refinancing: Which Option is for You?
The huge number of refinance options available to borrowers is truly breathtaking. We can help you find the loan program that can fit your situation the best. Contact us at 562 320-0510 to begin the process. There are several questions to ask yourself as you review your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Maybe you are presently in a mortgage with a high, fixed interest rate, or a loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of the mortgage loan, even as interest rates rise. This can be particularly a good option if you aren't planning a move within the next 5 years or so. On the other hand, if you can see yourself selling your home before too long, 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 planning to cash out some of your home equity with your refinance? Your house needs updating; your son has gone to college and needs tuition; or you are taking your family on a cruise. With this in mind, you'll need to find a loan higher than the balance remaining of your present mortgage.Then you'll You will be looking for a loan for more than the balance remaining of your existing mortgage in that case. You may not have an increase in your monthly payemnt, however, if you've had your current mortgage loan for a number of years, and/or your interest rate is high.
Do you hold other debt, maybe with a high interest rate, that you want to consolidate? If you hold some higher interest debts (like credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Building up Equity More Quickly
Do you need to build up equity quicker, and have your mortgage paid off sooner? Then, you'll want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. Your monthly payments will probably be more than they were with a longer term mortgage loan, but the pay-off is: you will pay considerably less interest and can build up equity more quickly. But, you may be able to switch without a bigger monthly mortgage payment if your longer term mortgage loan was closed a while back, and the remaining balance is low. You may even make it lower! To help you figure out your options and the many benefits of refinancing, please call us at 562 320-0510. We are here for you.
Curious about refinancing your home? Call us at 562 320-0510.