Refinancing: Which Program is for You?
There are not as many refinance loan options as there are borrowers, but it feels like it sometimes! Contact us at 562 320-0510 and we will match you with the loan program that fits you best. In order to review your options, you will need to consider what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even if interest rates rise. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can particularly be a great option. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity with your refinance? Maybe you're dreaming of a cruise; you have to pay college tuition for your child; or you are updating your kitchen. In this case, you want to find a loan higher than the balance remaining on your existing mortgage loan.With this goal, you'll want However, if your interest rate is high now and you've had it for quite a few years, you could be able to achieve your goals without an increase in your mortgage payment.
Perhaps you want to pull out a portion of the equity in your home (cash out) to put toward other debt. If you hold any debt with higher interest (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Are you dreaming of paying off your loan more quickly, while building up your equity faster? You should consider refinancing with a short-term loan, like a 15-year mortgage loan. You will be paying less interest and increasing your home equity faster, even though your mortgage payments will usually be more than you were paying. However, if you've had your current 30-year loan for a long time and the loan balance is rather low, you may be do this without increasing your monthly payment — you may even be able to save! To help you determine your options and the many benefits of refinancing, please contact us at 562 320-0510. We are here for you.
Curious about refinancing your home? Give us a call: 562 320-0510.