Selecting a Refinancing Loan

When you are overwhelmed with so many choices, it may seem as if there are even more loan programs than borrowers! We can help you select the loan program that will fit your financial situation the best. Call us at 562 320-0510 to get things started. There are some general things to bear in mind as you consider the options.

Lowering Your Payments

Are achieving lower payments and an improved rate your main refinance goals? Then the best choice could be a low fixed-rate loan. Perhaps you currently have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — in which the interest rate varies. Even when interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. This kind of loan can be particularly a good idea if you don't think you'll be selling your home within the next 5 years or so. On the other hand, if you do see yourself selling your home within several years, an ARM mortgage with a low initial rate may be the ideal way to lower your monthly payments.

Refinancing to Cash Out

Is "cashing out" your primary reason for refinancing? Your house needs updating; your son has gone to University and needs tuition money; or you are taking your family on a cruise. Then you'll want to find a loan higher than the remaining balance on your current mortgage loan.With this goal, you want to qualify for a loan for a higher amount than the balance remaining on your current mortgage loan. However, if your interest rate is high now and you have held it for quite a few years, you may be able to accomplish your goals without making your monthly payments higher.

Consolidating Your Debt

Do you have other debt, perhaps with higher interest, that you'd like to consolidate? If you have a fair amount of home equity, paying off other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) may help save you a chunk of cash each month.

Building up Equity More Quickly

Do you want to build up equity quicker, and have your mortgage paid off sooner? If this is your goal, your refinance mortgage can change you to a loan program with a short, like a 15 year loan. Even though your monthly payments will probably be increased, you will be paying less interest; so your home equity will build up faster. Conversely, if your existing longer term mortgage loan has a small remaining balance, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you understand your options and the multiple benefits in refinancing, please call us at 562 320-0510. We will help you reach your goals!

Curious about refinancing your home? Give us a call at 562 320-0510.

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