Refinancing: Which Loan Program is for You?
Even though it seems like it at times, there are not as many refinance loan programs as there are applicants! We can help you choose the refinance program that will fit your needs the best. Call us at 562 320-0510 to get started. What do you hope to achieve with refinancing? Considering in mind the information below will help you narrow your choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan may be a wise option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the loan, even as interest rates rise. If you plan to stay in your home for at least five more years, a loan with a fixed rate may be a particulary good choice for you. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? Your home needs updating; your son has gone to University and needs tuition money; or you are planning a special vacation. With this in mind, you will need to find a loan higher than the remaining balance of your current mortgage.So you will need You might not increase your monthly payemnt, though, if you've had your current mortgage for a while, and/or your loan interest rate is high.
Do you have other debt, perhaps with high interest, that you'd like to consolidate? If you have enough equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a lot of cash every month.
Building up Equity Faster
Are you dreaming of paying your loan off faster, while building up your home equity faster? If this is your hope, the refinance can change you to a loan program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your home equity more quickly, although your payments will generally be higher than they were. But, you may be able to switch without much increase in your monthly mortgage payment if your long term mortgage was closed a while ago, and the remaining balance is low. You could even make it lower! To help you figure out your options and the multiple benefits of refinancing, please call us at 562 320-0510. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call at 562 320-0510.