Refinancing: Which Program is for You?
There are an enormous number of refinancing options available to borrowers. Call us at 562 320-0510 and we can match you with the loan program that fits you best. There are several things to keep in mind while you consider your options.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice may be a low fixed-rate loan. Perhaps you currently have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Even when rates come up later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low interest rate for the life of your loan. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a good choice. However, an ARM with a initial low payment could be a wiser way to lower your payments if you see yourself moving within the near future.
Is your refinance goal mainly to pull out some home equity for an infusion of cash? It could be you're going on a much needed vacation; you need to pay college tuition for your child; or you are updating your kitchen. So you'll need to qualify for a loan for more than the balance remaining of your current mortgage.Then you'll You will need to qualify for a loan for a higher amount than the remaining balance on your existing mortgage in that case. You may not increase your mortgage payemnt, however, if you have had your current mortgage for a number of years, and/or your interest rate is high.
Do you want to cash out a portion of your home equity to consolidate other debt? Yes you can! If you have a fair amount of home equity, taking care of 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 each month.
Paying it off Sooner
Do you want to build up home equity more quickly, and pay off your mortgage more quickly? If this is your plan, the refinance mortgage can switch you to a loan program with a shorter term, for example: a 15 year loan. The payments will likely be higher than with your long-term mortgage, but in exchange, that you will pay considerably less interest and can build up equity quicker. But, you could be able to switch without a higher monthly mortgage payment if your long term mortgage loan was closed a while ago, and the remaining balance is low. You could even pay less! To help you figure out your options and the many benefits in refinancing, please call us at 562 320-0510. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call at 562 320-0510.