Which Refinancing Loan Program is Right for You?
There are an enormous number of refinancing options available to borrowers. Call us at 562 320-0510 and we can work with you to qualify you for the right refinance loan program to fit your financial needs. What are your reasons for refinancing? Considering in mind the following will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan could be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you plan to stay in your home for about five more years, a loan with a fixed rate may be an especially good choice for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Getting Out some Cash
Is "cashing out" your main reason for your refinance? It could be you want to make home improvements, take care of your college kid's tuition, or go on a special family vacation. So you need to find a loan above the remaining balance on your current mortgage.With this goal, you will You will need to qualify for a loan for a higher amount than the remaining balance on your existing mortgage in that case. If you've had your existing mortgage loan for a number of years and/or have a mortgage with a high interest rate, you might\could be able to do this without increasing your mortgage payment.
Do you want to pull out some home equity to consolidate other debt? Yes you can! If you have the home equity to make it work, paying off other high interest debt (for example: credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars monthly.
Paying it off Sooner
Do you hope to build up equity more quickly, and have your mortgage paid off faster? Then, you'll need to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. You will be paying less interest and growing your home equity faster, although your payments will generally be more than you were paying. However, if you have held your current 30-year mortgage for a long time and the remaining balance is relatively low, you may be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you determine your options and the numerous benefits in refinancing, please contact us at 562 320-0510. We would love to help you reach your goals!
Curious about refinancing? Call us: 562 320-0510.