Which Refinancing Program is Right for You?
Although it seems like it sometimes, there are not as many refinance options as there are applicants! Call us at 562 320-0510 and we will match you with the refinance program that best fits you. In order to review your choices, you'll need to think about your goals for your refinance.
Lowering Your Payments
Are achieving better payments and a lower rate your main refinance goals? If so, your best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even as interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about five years), a fixed rate mortgage loan can particularly be a good loan option. However, if you do see yourself moving before too long, an ARM with a small initial rate may be the best way to lower your monthly payment.
Is "cashing out" your primary reason for refinancing? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you will want to find a loan higher than the balance remaining on your current mortgage loan.Then you will want However, if your loan interest rate is currently high and you have held it for quite a few years, you could be able to achieve your goals without a rise in your mortgage payment.
Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you have the equity in your home for it, taking care of other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars each month.
Paying it off Sooner
Are you planning to fatten your home equity faster, and get your mortgage paid off more quickly? Consider refinancing to a short-term loan, such as a 15-year mortgage. You will be paying less interest and growing your home equity faster, although your mortgage payments will generally be higher than you were paying. Conversely, if your current longer term loan has a small remaining balance, and was closed a number of years ago, you may be able to make the change without paying more each month. To help you understand your options and the many benefits of refinancing, please contact us at 562 320-0510. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call at 562 320-0510.