Which Refinancing Program is Best for You?
The number of refinance options available to borrowers is truly breathtaking. Contact us at 562 320-0510 and we can match you with the loan program that is ideal for your needs. What are your reasons for 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? If so, getting a low, fixed-rate loan could be a wise choice for you. Maybe you are now in a loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage loan, even as interest rates rise. A fixed-rate mortgage can be especially a wise option if you don't think you'll be moving within the next five 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 within the near future.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity with your refinance? Your house needs new carpet; your daughter has gone to college and needs tuition; or you have a special family vacation planned. So you'll want to get a loan higher than the balance remaining on your present mortgage loan.So you'll want to qualify for a loan for a higher amount than the balance remaining on your existing mortgage. You might not have an increase in your monthly payemnt, however, if you've had your current loan for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Do you hold other debt, perhaps with high interest, that you need to consolidate? If you have the equity in your home for it, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars a month.
Getting a Shorter Term Loan
Are you hoping to fatten your home equity faster, and get your mortgage paid off more quickly? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage. You will be paying less interest and growing your home equity more quickly, although your mortgage payments will generally be higher than you were paying. However, if you have held your current thirty year mortgage for a number of years and the loan balance is relatively low, you might be able to do this without increasing your monthly mortgage payment — it's even possible to save! To help you figure out your options and the numerous benefits in refinancing, please contact us at 562 320-0510. We will help you reach your goals!
Want to know more about refinancing? Give us a call: 562 320-0510.