Refinancing: Which Program is for You?
Although it seems like it sometimes, there aren't as many loan programs as there are borrowers! Contact us at 562 320-0510 and we will work with you to qualify you for the best refinance loan program for your situation. surveying your choices, you'll need to list your goals for your refinance.
Lowering Your Payments
Are getting lower payments and an improved rate your main refinance goals? Then the best option might be a low fixed-rate loan. Maybe you are currently in a mortgage with a high, fixed interest rate, or a loan in which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your mortgage, even if interest rates rise. A fixed-rate mortgage is especially a wise option if you don't think you will move within the next five years or so. On the other hand, if you can see yourself selling your home in the near future, an ARM mortgage with a low initial rate might be the ideal way to bring down your monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you want to qualify for a loan for more than the remaining balance on your existing mortgage loan.In this case, you need If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment bigger.
Do you have other debt, maybe with higher interest, that you want to consolidate? If you have built up some home equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of money every month.
Building up Equity Faster
Do you want to build up home equity quicker, and pay off your mortgage faster? In that case, you'll need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. Although your monthly payment amount will likely be increased, you will be paying less interest; so your home equity will rise up faster. But, you might be able to make the change without a higher monthly payment if your longer term mortgage was closed a while back, and the balance remaining is low. You may even pay less! To help you understand your options and the multiple 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? Give us a call: 562 320-0510.