Choosing a Refinancing Loan

There are not as many refinance loan programs as there are applicants, but at times it feels like it! We can guide you to select the loan program that will fit your needs the best. Call us at 562 320-0510 to get started. There are some general things to have in mind as you consider the choices.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan may be a wise option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage, even as interest rates rise. If you are not planning a move in the near future (about five years), a fixed-rate mortgage can especially be a wise option. On the other hand, if you can see yourself moving before too long, an ARM mortgage with a small initial rate may be the ideal way to lower your monthly payments.

Getting Out some Cash

Are you planning 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 take your family on a dream vacation. With this in mind, you will want to find a loan above the remaining balance on your existing mortgage.In that case, you want However, if your interest rate is high now and you've held it for quite a few years, you may be able to achieve your goals without an increase in your mortgage payment.

Consolidating Your Debt

Do you have other debt, maybe with high interest, that you'd like to consolidate? If you have a fair amount of equity, paying toward other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of cash every month.

Switching to a Shorter Term Loan

Are you planning to fatten your equity faster, and get your mortgage paid off sooner? Consider refinancing to a shorterterm loan, such as a 15-year mortgage. The payments will likely be more than with a long-term mortgage, but the pay-off is: that you will pay quite a bit less interest and can build up equity quicker. On the other hand, if your existing longer term loan has a small balance remaining, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you understand your options and the numerous benefits of refinancing, please contact us at 562 320-0510. We can help you reach your goals!

Want to know more about refinancing? Give us a call at 562 320-0510.

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