Choosing a Refinancing Loan
There are not as many loan program choices as there are borrowers, but sometimes it seems like it! We can guide you to select the refinance loan program that can fit your situation the best. Contact us at 562 320-0510 to get started. In the interest of looking at your choices, you can determine what you want to achieve with your refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in that low rate for the term of your mortgage. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can especially be a great loan option. On the other hand, if you do see yourself selling your home within several years, an ARM mortgage with a low initial rate might be the best way to lower your monthly payment.
Is your refinance goal mainly to "cash out" some home equity? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. Then you want to get a loan for more than the balance remaining on your present mortgage.Then you'll want to need to get a loan for a higher number than the remaining balance on your current mortgage loan. However, if your loan interest rate is high now and you have held it for quite a few years, you may be able to reach your goals without an increase in your mortgage payment.
Maybe you hope to pull out a portion of the equity in your home (cash out) to put toward other debt. If you have some higher interest debts (such as credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the equity built up to make it work.
Building up Equity Faster
Do you hope to build up home equity quicker, and pay off your mortgage more quickly? Consider refinancing with a shorterterm loan, often a 15-year mortgage. The monthly payments will likely be more than they were with the longer term mortgage, but the pay-off is: that you will pay substantially less interest and will build up equity more quickly. However, if you have had your current 30 year loan for a long time and the loan balance is somewhat low, you might be do this without raising your monthly mortgage payment — you might even be able to save! To help you understand your options and the numerous benefits in refinancing, please call us at 562 320-0510. We are here to help you reach your goals!
Curious about refinancing your home? Call us: 562 320-0510.