Refinancing: Which Option is for You?
The number of refinance options available is truly breathtaking. Call us at 562 320-0510 and we can work with you to qualify you for the perfect refinance program for your needs. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan could be a wise choice for you. Perhaps you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the rate of interest can vary. Even when rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set that low rate for the term of your mortgage. A fixed-rate mortgage is particularly a good choice if you don't think you'll be selling your home within the next 5 years or so. However, an ARM with a initial low payment may be a smarter way to reduce your payments if you expect to move in the near future.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? Maybe you need to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. In this case, you will want to get a loan for more than the remaining balance of your present mortgage loan.With this goal, you'll want You might not have an increase in your monthly payemnt, however, if you've had your current loan for a while, and/or your interest rate is high.
Do you have other debt, maybe with higher interest, that you want to consolidate? If you hold some debt with steep interest (like 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 enough home equity.
Paying it off Faster
Do you plan to build up equity more quickly, and pay off your mortgage sooner? You should consider refinancing with a short-term loan, such as a 15-year mortgage loan. The payments will likely be more than with a longer term mortgage, but the pay-off is: that you will pay considerably less interest and will build up equity quicker. However, if you have had your current thirty-year mortgage loan for a long time and the loan balance is rather low, you could be do this without increasing your mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits of refinancing, please call us at 562 320-0510. We are here for you.
Curious about refinancing your home? Give us a call: 562 320-0510.